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.

In this scenario the customer of my client required 30 day terms and the supplier of the goods required payment before they released the good, so you can see the problem. We have a gap of about 40 days including the shipping time. With no financing in place the company was struggling with the possibility of having to refuse the order after all that hard work of trying to get it in the first place.

That is an option, but the owner of the company kept looking for a solution. He ended up speaking with an Accounts Receivable Factoring Company, but they could not help because of the time span as well since they could only fund on open invoices on delivered goods. The goods could not be delivered without payment and he could not get payment at this point without delivering the goods. Quite a predicament.

The owner of the company spoke with a Professional Commercial Finance Broker who knew exactly what to do. He put together a Purchase Order Finance facility with a lender that specialized in the product that the company was selling. In a very short period of time, the financing was approved and the transaction was completed without an issue, and now the company was in the position to take any size order without the fear of not being able to afford to take the business.