mrmagic2713

i like the idea of contacting various retail outlets to carry your t-shirt product, but isnt it true that you normally have to give up your goods on a consignment basis, and if they sell, you now take on the hassle of collecting reciveables? i once ran across a publication that had a listing of every indoor flea market operating in the u.s. the reason that would seem cool is because most flea market vendors are accustomed to buying and PAYING for their goods upfront, and then they try to sell them in their flea market booth. are there any other retail situations that will actually pay upfront for wholesale orders of t-shirts?

 

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Comin'OutSwingin

Quote: Originally Posted by mrmagic2713 i like the idea of contacting various retail outlets to carry your t-shirt product, but isnt it true that you normally have to give up your goods on a consignment basis, and if they sell, you now take on the hassle of collecting reciveables?

This depends on the particular retailer. Some will want to do consignment on an unproven product, but if you package your products and sales materials right, AND have a good product, there are some out there that will jump at the chance to buy your goods and put them in their stores. You have to be very careful with consignment deals also. GET EVERYTHING IN WRITING!!!

Also, there are companies and even banks that offer a service called factoring. For a small fee (normally 2%-5%), they will collect your accounts receivables and pay you up front for them. You submit the invoice, and normally within 24 hours you will have the money (less the fee) from that invoice. It's not a bad deal at all.

Quote: Originally Posted by mrmagic2713 i once ran across a publication that had a listing of every indoor flea market operating in the u.s. the reason that would seem cool is because most flea market vendors are accustomed to buying and PAYING for their goods upfront, and then they try to sell them in their flea market booth. are there any other retail situations that will actually pay upfront for wholesale orders of t-shirts

Yes. Normally it will be a situation where someone is just opening a new store. A smaller boutique may be an anwer for that as well.

 

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mrmagic2713

wow! that "factoring" deal sounds great! what would be the normal terms on such an arrangement? would they have to do a credit check on the retailer that i am wholesaling the shirts to? also would they work with a start up company like mine? and is there a minimum or maximun dollar amount for these deals? i would also assume that the bank, or third party company would have to be satisfied with my product in terms of its potential ablity to sell in the stores so that they can get their money back from the retailers. any in-depth info on the topic would be greatly appreciated

 

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Comin'OutSwingin

Quote: Originally Posted by mrmagic2713 wow! that "factoring" deal sounds great! what would be the normal terms on such an arrangement? would they have to do a credit check on the retailer that i am wholesaling the shirts to? also would they work with a start up company like mine? and is there a minimum or maximun dollar amount for these deals? i would also assume that the bank, or third party company would have to be satisfied with my product in terms of its potential ablity to sell in the stores so that they can get their money back from the retailers. any in-depth info on the topic would be greatly appreciated

Yes, a credit check on the retailer would definitely be done. But if their credit is satisfactory, then that is all that is needed.

The size of your company or how long you have been in business is no factor at all! The only thing they care about is that you have an invoice and a credit worthy company owes you money.

I think minimums would vary, but I have seen some very small ones ($100!)

Also, they have no interest in the ability of your product to sell. If you have a product that you have sold to a retailer, and that retailer owes you money from an invoice, then factoring companies with take that invoice and pay you the amount that the retailer owes you (minus factoring company fee), and you are done with the retailer as far as collecting the money goes. If the retailer doesn't pay, the factoring company takes it up with the retailer, and you have no liability. This is why they must consider the credit of the retailers, and normally this is their only consideration.

I'll throw in some links to some info about factoring. There are many companies that you can find online that do factoring, but I would suggest a local company. I think it's better to have a "personal" relationship with those that will be handling business money. Also, make sure you do as much investigating about the company as you can. Whether you use a company online or locally.

Here are some more info on factoring

1. 21stfinancialsolutions

2. Facteon


These are just a couple. Do a search on the web for factoring companies. Check out the FAQ section of some of their websites. That should give you some good info as well.

Hope this helps!

 

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