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  1. #1

    PO Funding / Project Funding

    We are looking for financing for a purchase order.

    About the merchant:
    Product manufacturer working with a large retailer for a long time selling them 7 SKU's with the manufacturers branding on it, Recently this large retailer changed the way they operate and is moving from having outsiders branded products to having everything Private Labeled (their own branding). so due to the change they slowed down ordering for a bit to sell out the stock from the manufacturers branding which in turn made our merchants (the manufacturers) revenue dip. Now the retailer placed an order with their own branding and for 12 SKU's.

    The order is 1.5 million dollars
    We are looking for $500k
    the fulfillment of the order will be in this order with 30 days in between each:
    3rd
    3rd
    6th
    6th
    Looking for 6 months
    the merchant will not be able to make daily payments
    like an MCA

    SALES 2021
    Jan: $597,432.54
    Feb: $644,315.92
    Mar: $317,615.07
    Apr: $429,418.91
    May: $382,008.60

  2. #2
    Senior Member Reputation points: 272403
    Join Date
    Mar 2015
    Location
    Boynton Beach, FL
    Posts
    2,949

    Quote Originally Posted by Kash View Post
    We are looking for financing for a purchase order.

    About the merchant:
    Product manufacturer working with a large retailer for a long time selling them 7 SKU's with the manufacturers branding on it, Recently this large retailer changed the way they operate and is moving from having outsiders branded products to having everything Private Labeled (their own branding). so due to the change they slowed down ordering for a bit to sell out the stock from the manufacturers branding which in turn made our merchants (the manufacturers) revenue dip. Now the retailer placed an order with their own branding and for 12 SKU's.

    The order is 1.5 million dollars
    We are looking for $500k
    the fulfillment of the order will be in this order with 30 days in between each:
    3rd
    3rd
    6th
    6th
    Looking for 6 months
    the merchant will not be able to make daily payments
    like an MCA

    SALES 2021
    Jan: $597,432.54
    Feb: $644,315.92
    Mar: $317,615.07
    Apr: $429,418.91
    May: $382,008.60
    How much AR is outstanding? Perhaps there is enough liquidity in the AR to get them over the hump without the need for PO financing?
    Kevin Henry
    Managing Director-Commercial Services
    Sterling National Bank
    KHenry@SNB.Com
    609-273-6325
    Boynton Beach, FL

  3. #3
    Quote Originally Posted by Kevin Henry View Post
    How much AR is outstanding? Perhaps there is enough liquidity in the AR to get them over the hump without the need for PO financing?
    They have a factoring company already...

  4. #4
    Senior Member Reputation points: 5013 @jeannette's Avatar
    Join Date
    Dec 2012
    Location
    Buford, GA
    Posts
    279

    I work with a lot of PO providers and usually secure the transaction with AR Finance so you get paid on both sides of the transaction. If you would like to call to discuss the transaction, you can reach me at 770-362-2307 or email jnearing@amerifactors.com
    Jeannette Nearing | Business Development Officer| AmeriFactors
    | M (770) 362-2307
    jnearing@amerifactors.com |

    http://www.amerifactors.com
    https://www.linkedin.com/in/jeannettenearing

  5. #5
    Senior Member Reputation points: 272403
    Join Date
    Mar 2015
    Location
    Boynton Beach, FL
    Posts
    2,949

    Quote Originally Posted by Kash View Post
    They have a factoring company already...
    There's a difference between a factoring company and a good factoring company. Perhaps their current factor is too expensive and not willing to lend on their inventory. Perhaps their current factoring company does not have the ability to do trade finance? I would suggest exploring the most cost efficient routes first before exploring PO funding. Why kill the margin/profits if you can get liquidity in a better manner?
    Kevin Henry
    Managing Director-Commercial Services
    Sterling National Bank
    KHenry@SNB.Com
    609-273-6325
    Boynton Beach, FL

  6. #6
    We offer up to 15 months on A paper MCA submissions and 24 months on Term Loan submissions. Feel free to reach out for additional information.
    Benjamin Lugassy
    SOS Capital
    blugassy@soscapital.com
    P:212-235-5462
    F:212-235-5459
    www.soscapital.com

  7. #7
    Member Reputation points: 4632 Rickinindy's Avatar
    Join Date
    Oct 2018
    Location
    Indianapolis
    Posts
    38

    got any real estate????
    Metromedia Funding Solutions LLC
    55 Monument Circle Suite 745*
    Indianapolis Indiana 46204
    317-649-0110*
    https://www.metromediafunding.com/

    Like us on Facebook!https://www.facebook.com/mpmetromedia/

    Rick@metromediafunding.com
    Cell 214-400-6873
    Your friends in funding.

  8. #8
    Call Jarrett at Crossroads Financial, they do mainly inventory financing but do PO funding as well

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