[Kevin Henry-Seacoast]

It's a strange sales cycle. They receive a PO and with it a 50% deposit. The manufacturer takes anywhere between 20-30% of that deposit to build the product in China. The time it takes to build on that PO could be 1 week all the way out to 6 months. Once the order is built he then sends a final invoice to the hotel, this is his majoirity customer base, major hotel chains, which at this point he'll receive the remainder due. He wont send the product to the customer until he receives the outstanding 50% due. It's hard to determine when and but what tangible form the customer becomes the owner of that product . The business owner call his AR " in transit"

Hi TMR,

Tough to fund the invoices as the goods are technically COD. The Customer does not take delivery until paid so it's really a cash transaction.