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  • Digg it UP - Purchase Order Financing: for Start-ups and Established Businesses

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    dit history that will allow you to have payment terms and you don't have a bank line of credit.

    If you are an establish

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    If you are a new business and you get a request for a huge order, it's exciting, isn't it? You start mentally adding up all the money you will make, all the supplies you can buy, all the business you can get after that.

    Then when you talk to the manufacturer of the product, and discover they need partial payment before shipping, perhaps even some when you place the order and the rest on delivery, you realize you'll have to refuse the order. Since you are a new business, you don't have the credit history that will allow you to have payment terms and you don't have a bank line of credit.

    If you are an establishe

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    money you will make, all the supplies you can buy, all the business you can get after that.

    Then when you talk to the manufacturer of the product, and discover they need partial payment before shipping, perhaps even some when you place the order and the rest on delivery, you realize you'll have to refuse the order. Since you are a new business, you don't have the credit history that will allow you to have payment terms and you don't have a bank line of credit.

    If you are an establish

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    nufacturer of the product, and discover they need partial payment before shipping, perhaps even some when you place the order and the rest on delivery, you realize you'll have to refuse the order. Since you are a new business, you don't have the credit history that will allow you to have payment terms and you don't have a bank line of credit.

    If you are an establish

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    and the rest on delivery, you realize you'll have to refuse the order. Since you are a new business, you don't have the credit history that will allow you to have payment terms and you don't have a bank line of credit.

    If you are an establish

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    dit history that will allow you to have payment terms and you don't have a bank line of credit.

    If you are an established business and you get a huge order, you also might have to refuse it. You might not have a good credit history or might not have a large enough line of credit with your bank.

    There is a solution, called Purchase Order Financing. If your customer is established and has good credit, you can get a Letter of Credit or an advance of funds on the purchase order. This advance will pay for the raw materials, parts, finished goods, packaging, shipping, inspections, etc.

    This is especially i

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