[RJ1]

Does anyone know of a process inwhich the manufactor shares the cost when selling to retail stores. Basically, you get your money after the manufactor takes their share. The manufactor handles all the arrangements without money upfront or partial money upfront.

 

[Solmu]

In other words where someone takes all the risk on your product?

That would be a business loan, or an angel investor. I've never heard of a manufacturer doing that, but there are other people who will invest in you. If you have a solid business plan. And probably not in the current economic climate.

 

[RJ1]

OK, I thought I read something on Dobizo months ago about sharing the cost with a manufacture. It went something like this if I remember right. If you had a guarantee contract arrangement and not enough funds to forefill the contract. The manufacture will allow a payment plan until the buyer pays in full usually net 30 or net 45 and the funds are divide accordingly. I just cannot find that articles anymore, thank you for your information.

 

[Solmu]

Ah, now that is an entirely different matter. You didn't mention in the first post that you were talking about situations where you already had a purchase order from the retailer. In that case, yes, I imagine some manufacturers would be willing to work with you on that. Greg (Comin'OutSwingin) has also talked about banks offering bridging loans in that sort of situation. Since in that case you have a guarantee of future income (assuming they don't default), then there are options.

 

[RJ1]

OH O.K., bridge loan. Sorry I wasn't clear but I will do some more research on bridge loans, but like you said earlier with the economy being as it is that still may be a long shot.

Thanks a lot for the comments.

 

[Solmu]

OH O.K., bridge loan.

Yeah, I don't know if it will be called that or not in this case, but it might be. You'll most often see the term "bridging loan" in housing mortgages: it's what you need if you buy a new house while your old one is still on the market. I think it would apply generically to any situation where you needed finance to "bridge" from one point to another, but I'm not a finance guru.

Anyway, my point being as a keyword term it might be useful, but you might only get results for housing loans.

 

[RJ1]

Your right, I already looked it up. It also states that some private companies that are not with banks provide these types of loans but of course the interest is very high due to the risk.

You were right on point, it gives me something to work with when talking with manufactures and it also builds a strong relationship if everything goes right, according to what I have just read.

Thanks again, this is great information.