How About Factoring Financing Your Product? PDF Print E-mail
Thursday, 28 May 2009 00:00
We know that finding funding is more difficult than it has been 100 years. Lets face it, we have heard that we are in the worst recession since the Great Depression.

Well, that is what a ton of people would like to let you think. It comes down to overcoming these obstacles in a start-up. The bottom line is that entrepreneurs don't listen to people who say these things. In fact, they don't care about what the negative side of things. They keep focused and drive past any obstacle. They will find a way through it. In this instant that is finding funding.

One of the things I have done lately is created a group on LinkedIn called "Creative Start-Up Forum Group" which now has over 150 members and growing steadily each day. The bottom line is that there are inspired entrepreneurs like myself that need to find new ways of getting finance.

That leads me to my blog topic: "How About Factoring Financing Your Product?' In the recent month I have researched factoring. This seems to be a way of getting your product paid for if you have Placement Order (PO) from a Credit Worthy retailer, wholesaler or buyer. If they have good credit, you can get your product paid for! That's right.

Of course there are small fees, but it has to work for your business and how much margin you are making. You have to consider your overall costs including shipping, manufacturing, ect..

Now, factoring financing is not for every business, but if you have a product and someone who is willing to pay for it, give you a PO that you can deliver. This might be an option to get your product manufactured.

You shoud have some marketing money to get the product off the shelf, but I think it could be a creative way for your business to get started. Maybe you can find free grass roots marketing to get your product going.

I welcome anybody that has had experience with this type of financing to chime in on my blog!