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Factoring and Purchase Order Financing - Manufactured overseas delivered to company’s own warehouse/facility

Robyn Barrett - Thursday, March 31, 2011

In the prior scenarios, the goods were handled in each case by third parties. In this case, the goods come in to the client’s own warehouse where they have to be picked, packed and shipped by the client to fulfill the order. Although the goods are finished, we now have to evaluate the history and ability of the client to perform. Although the process may be simple, the client must not only have the capacity to fulfill the order but also have verifiable cash flow from other sources than purchase order financing to cover overhead to fulfill the order. If these facts don’t exist, an alternative may be a requirement that the client use a third party warehouse to fulfill the order.

 

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