Ever dreamed of that bug sales? You know the one I am talking about, the one that would put your company on the map in your industry as a player. Be careful for what you wish for. Many companies have wished for that very thing until it actually happens. What would you do if you received that order and it was for more than you entire last 2 yeas of sales in one Purchase Order?

This has happened to other companies and it can happen to you to. After you get over the initial rush of the big order and you think of all the cash that will be coming in, then you think How can I possibly pull this order off? You will need to hire staff, buy equipment, pay for materials and you do not have the money for that. That is exactly what happened to a company in New York State USA. The owner of the company just figured he would go to the bank and they would lend him the money he needed, but the bank declined him.

With this order, the customer had to have terms on the invoice of 30 days, and to make it worse the supplier required payment prior to shipping. The time to deliver the goods from the time it leaves the supplier dock is 10 days. In this case we have a 10 day delivery time plus a 30 day collection time from the customer, so we have a 40 time span of where we do not have the financial capacity to handle the order. So what now? Decline the order?

The owner of the company did speak with some Accounts Receivable Factoring Companies but they were not able to help out due to the time lag between the timing of the advance requirement and the delivery of the goods to the customer. They could not Factor the Accounts Receivable until the product was delivered, and they could not deliver the product until they received an advance to pay for the product.

Through the use of a Commercial Finance Broker, a facility for Purchase Order Finance and Accounts Receivable Factoring was created. The order was able to be accepted which opened the door for future order from this customer and others just like them.

Wade Henderson - very Professional - 15 yrs in the Business Finance Field - reputation for getting the deal done. IMMFinancial.com accounts receivable loans invoice factoring companies