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  1. #1
    Senior Member Reputation points: 1018
    Join Date
    Oct 2012
    Posts
    142

    A trickey Situatioin

    Well, here is a catch -22 situation. I have ice cream manufacturer that a number of months received approximately (80) Purchase Orders to supply their product in 850 Walmart stores. Back then they were dealing with a small co-packer that could not meet the time frame of the deliveries.

    Hence, the Purchase Orders were cancelled. Walmart has come back to them with an order for their 1400 stores with the products they want to purchase. The problem is two-fold. First, although they given them the order, totally approximately $1.2M, they cannot issue the purchase order until the client can produce the product.

    Now,the catch-22. They need approximately $400,000 to produce the product so the purchase orders can be issued. This is not a Purchase Order Finance deal, as the Purchase Orders have not been issued. However, when the Purchase Orders are released then the financing can resort to a restructure of the financing. The company has decent Tax return, although the current years have been problematic. Essentially,what they are looking for is someone that can take a look at the potential that this company can offer, and not so much on financials.

    The ice cream is a specialty that has patent. A full Pitch Deck is Available.

    Pleas respond to my email address at president@fundingsourcesforbusiness.com

    Howie Dane
    President

    Funding Sources for Business
    (847) 831-4118
    Howie Dane

  2. #2
    Sounds tricky and risky.

    Maybe if there's a way to secure the patent as collateral.
    Uptown Iso Department
    ________________________________________
    Office | 732.994.2550
    iso@uptownfund.com | uptownfund.com

  3. #3
    Senior Member Reputation points: 4567 NickHubbard's Avatar
    Join Date
    Jun 2015
    Location
    Saint Louis, Mo
    Posts
    326

    Quote Originally Posted by FSB View Post
    Well, here is a catch -22 situation. I have ice cream manufacturer that a number of months received approximately (80) Purchase Orders to supply their product in 850 Walmart stores. Back then they were dealing with a small co-packer that could not meet the time frame of the deliveries.

    Hence, the Purchase Orders were cancelled. Walmart has come back to them with an order for their 1400 stores with the products they want to purchase. The problem is two-fold. First, although they given them the order, totally approximately $1.2M, they cannot issue the purchase order until the client can produce the product.

    Now,the catch-22. They need approximately $400,000 to produce the product so the purchase orders can be issued. This is not a Purchase Order Finance deal, as the Purchase Orders have not been issued. However, when the Purchase Orders are released then the financing can resort to a restructure of the financing. The company has decent Tax return, although the current years have been problematic. Essentially,what they are looking for is someone that can take a look at the potential that this company can offer, and not so much on financials.

    The ice cream is a specialty that has patent. A full Pitch Deck is Available.

    Pleas respond to my email address at president@fundingsourcesforbusiness.com

    Howie Dane
    President

    Funding Sources for Business
    (847) 831-4118
    https://www.kingtradecapital.com/
    Nick Hubbard
    Senior Loan Advisor
    314-252-0299 - Office
    314-885-2262 - Direct
    nick@elitefactoring.com
    www.elitefactoring.com

  4. #4
    Senior Member Reputation points: 337045
    Join Date
    Mar 2015
    Location
    Rock Ridge
    Posts
    3,453

    Quote Originally Posted by NickHubbard View Post
    Absent a verified PO-King Trade is NOT doing this.....
    Hedley Lamarr......That's Hedley

  5. #5
    Senior Member Reputation points: 203054
    Join Date
    Jan 2014
    Posts
    1,361

    factor them...they probably have AR.. They are manufacturer so probably use heavy machinery for an equipment financing play.

  6. #6
    Member Reputation points: 10
    Join Date
    Sep 2022
    Location
    Lakewood, NJ
    Posts
    51

    Like a letter of credit?
    Josh Dan
    B2B Funding LLC
    josh@b2bfundingllc.com
    Super Broker
    (347) 794-1592

  7. #7
    Howie,

    Give me a call. We are able to be creative with our funding and might be able to help the client in this situation very quickly. 815-878-0244



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