Canadian distributors, U.S. distributors, etc.. working with European and foreign manufacturer can now access immediate funds for large orders.
The distributor’s products (Ground Screws) are used in construction to establish and secure a foundation in different terrain. As an alternative to concrete slab foundations, the screws allow quick and stable foundations to be installed where traditional solutions may not be ideal. However, shipping the product from the Czech Republic meant that there was a considerable lag time between when payment to the manufacturer was due and when the distributor could collect from the purchaser.
Traditional bank funding was not an option due to unusual hurdles such as international currency conversions, the innovative and non-traditional nature of the product and the involvement of somewhat risky construction projects.
Factor finance companies on the other hand are more flexible and are willing to structure a solution involving purchase order financing and factoring that will work well for the distributor, allowing them to create the cash needed to complete transactions for customers in both the US and Canada.
The challenges for the factor lay in working with multiple companies in different countries and funding while waiting a significant amount of time during transport. Once established though, a factor is able to fund and then manage all of the logistics and needs of each participant. A huge added benefit for all parties involved.
Financing solution like this allows particular distributor to capture business they would not otherwise be able to facilitate; while introducing innovative solutions to their customers for a more progressive growth cycle each quarter.
If you’re distribution company can benefit from out of the box problem solving like this, then use Factor bid
to get a few competitive offers from the top factor finance companies and start taking on more new business right away.