[Fundyman]

1st of all, this merchant told me that Wells Fargo offered to do some factoring for him, BUT @ 25% PER 45 DAYS!!! FOH......

2nd of all, what the guy wishes to have is a lender telling him something like this:

"Okay. We're allowing you up to $150K worth of contracts at a time, or in any given month. We'll back it by a letter or credit, or whatever, so you can go ahead, actually bid, and be taken seriously. Any funds you use will cost you 6% a month..., etc...."


Here below, what the merchant sent me:

"What we have done after getting registered with systems awards management "sam.gov" is doing government defense sales.

The way it works is the government, local and federal agencies put up around 200 to 300 ads a day for bids. They ask for everything from toilet paper to defense goods such as what I sell.
I'm these bids 25% of everything they purchase must be set aside for businesses such as small business, minority owned, women owned, veteran owned or some other set aside.
When they put up items to purchase they can range from 10 items to 300,000 items at once.
These proposals are usually 25k and up as they can direct buy with a government credit card anything that costs 25k for that fiscal year.
So because we are working on the direct purchase side as well but not set up yet which requires about 100 hours of different classes we are required to take for GSA Advantage we can only compete in the bidding.
So currently we are looking at a bid for Arkansas National Guard. They need 400k rounds of ammunition under 5 separate types. So what we do as a small business is get with our manufacturers and wholesalers and get prices for those quantities. Rule of thumb is more you buy cheaper it is.

So once we work up the pricing for that ammunition, work out pricing for the transortation from manufacture to use then us to that purchasing agent which includes all the hazmat Fee's we then submit our bids. We may bid along with several other companies however if 10 companies put in those bids only 1 wins that sale.
Once that big is accepted, usually takes 3 to 10 days they contact and award that company with the sale.
So before we even order anything we already know we won that particular purchase.
We then order goods, have to fulfill order by given date and then upon delivery they make payment of the agreed price.
So it's not like we buy this and hope we win, we win that contract then buy what we need and deliver.
Most deliveries usually only give 45 days for delivery so we have to have everything ordered, received and delivered within that 45 days."

THAT BEING SAID, who do you think can get funding for this type of scenario???

[Fundyman]

Anyone have a clue where I can get this type of funding?? Please send me a PM.

[Kevin Henry-Seacoast]

1st of all, this merchant told me that Wells Fargo offered to do some factoring for him, BUT @ 25% PER 45 DAYS!!! FOH......

2nd of all, what the guy wishes to have is a lender telling him something like this:

"Okay. We're allowing you up to $150K worth of contracts at a time, or in any given month. We'll back it by a letter or credit, or whatever, so you can go ahead, actually bid, and be taken seriously. Any funds you use will cost you 6% a month..., etc...."


Here below, what the merchant sent me:

"What we have done after getting registered with systems awards management "sam.gov" is doing government defense sales.

The way it works is the government, local and federal agencies put up around 200 to 300 ads a day for bids. They ask for everything from toilet paper to defense goods such as what I sell.
I'm these bids 25% of everything they purchase must be set aside for businesses such as small business, minority owned, women owned, veteran owned or some other set aside.
When they put up items to purchase they can range from 10 items to 300,000 items at once.
These proposals are usually 25k and up as they can direct buy with a government credit card anything that costs 25k for that fiscal year.
So because we are working on the direct purchase side as well but not set up yet which requires about 100 hours of different classes we are required to take for GSA Advantage we can only compete in the bidding.
So currently we are looking at a bid for Arkansas National Guard. They need 400k rounds of ammunition under 5 separate types. So what we do as a small business is get with our manufacturers and wholesalers and get prices for those quantities. Rule of thumb is more you buy cheaper it is.

So once we work up the pricing for that ammunition, work out pricing for the transortation from manufacture to use then us to that purchasing agent which includes all the hazmat Fee's we then submit our bids. We may bid along with several other companies however if 10 companies put in those bids only 1 wins that sale.
Once that big is accepted, usually takes 3 to 10 days they contact and award that company with the sale.
So before we even order anything we already know we won that particular purchase.
We then order goods, have to fulfill order by given date and then upon delivery they make payment of the agreed price.
So it's not like we buy this and hope we win, we win that contract then buy what we need and deliver.
Most deliveries usually only give 45 days for delivery so we have to have everything ordered, received and delivered within that 45 days."

THAT BEING SAID, who do you think can get funding for this type of scenario???

Fundyman,

Based on what was explained it does not appear to be a factoring facility Wells offered. When goods are accepted the customer is paying cash so there is no invoice. It sounds like contract finance.

KH

[Fundyman]

Fundyman,

Based on what was explained it does not appear to be a factoring facility Wells offered. When goods are accepted the customer is paying cash so there is no invoice. It sounds like contract finance.

KH

Perhaps. I have never been hit with this type of funding need before. The thing is, the guy's not getting a contract. He has to bid for the contract in order to get it, but he can't bid on a contract & lack sufficient funds to fulfill the order at the same time. So, if it's contract funding, the funding has to happen upfront.

[BentleyCap]

1st of all, this merchant told me that Wells Fargo offered to do some factoring for him, BUT @ 25% PER 45 DAYS!!! FOH......

2nd of all, what the guy wishes to have is a lender telling him something like this:

"Okay. We're allowing you up to $150K worth of contracts at a time, or in any given month. We'll back it by a letter or credit, or whatever, so you can go ahead, actually bid, and be taken seriously. Any funds you use will cost you 6% a month..., etc...."


Here below, what the merchant sent me:

"What we have done after getting registered with systems awards management "sam.gov" is doing government defense sales.

The way it works is the government, local and federal agencies put up around 200 to 300 ads a day for bids. They ask for everything from toilet paper to defense goods such as what I sell.
I'm these bids 25% of everything they purchase must be set aside for businesses such as small business, minority owned, women owned, veteran owned or some other set aside.
When they put up items to purchase they can range from 10 items to 300,000 items at once.
These proposals are usually 25k and up as they can direct buy with a government credit card anything that costs 25k for that fiscal year.
So because we are working on the direct purchase side as well but not set up yet which requires about 100 hours of different classes we are required to take for GSA Advantage we can only compete in the bidding.
So currently we are looking at a bid for Arkansas National Guard. They need 400k rounds of ammunition under 5 separate types. So what we do as a small business is get with our manufacturers and wholesalers and get prices for those quantities. Rule of thumb is more you buy cheaper it is.

So once we work up the pricing for that ammunition, work out pricing for the transortation from manufacture to use then us to that purchasing agent which includes all the hazmat Fee's we then submit our bids. We may bid along with several other companies however if 10 companies put in those bids only 1 wins that sale.
Once that big is accepted, usually takes 3 to 10 days they contact and award that company with the sale.
So before we even order anything we already know we won that particular purchase.
We then order goods, have to fulfill order by given date and then upon delivery they make payment of the agreed price.
So it's not like we buy this and hope we win, we win that contract then buy what we need and deliver.
Most deliveries usually only give 45 days for delivery so we have to have everything ordered, received and delivered within that 45 days."

THAT BEING SAID, who do you think can get funding for this type of scenario???

If all else fails find the client someone who can process their GSA schedule, you can probably make a decent commission on the referral and create a happy customer who sounds like they dont have a clue on how to become an approved vendor with the Fed.

Those P card transactions are no different than you buying from amazon so I doubt they can be leveraged as one person already explained.