"Microsoft is engaging in unlawful predatory practices that go well beyond the scope of fair competition."Orrin Hatch
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Alternative Venture Finance: Federal Grants and Loans
While most companies seeking venture capital initially think about angel investors and venture capitalists, a large alternative source of financing is federal grants and loans. The two largest federal grant programs are run by the Small Business ...
Calculating Your Finances For Free
There are as many uses for free mortgage loan calculators as there are as many free mortgage loan calculators available online. Here is a collection of these free mortgage loan calculators and how you can use them to help you with your mortgage ...
Mortgage Refinance
This article provides useful, detailed information about Mortgage Refinance. Microsoft Encarta defines \'mortgage\' as \'an agreement by which somebody borrows money from a money-lending organization such as a bank or savings-and-loan ...
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Usually the defining moment for a small to mid size distributor or wholesaler is when they get a huge order from their best customer. It is not unusual for a large customer to place a few small test orders, and if everything works well, to follow up with a stream of massive orders. This is the kind of situation that can truly grow a company and help it reach the next level.
However, this can also present a very significant challenge. Distributors and wholesalers usually buy the products from suppliers in order to re-sell them. And, suppliers always require to be paid either upfront or with a letter of credit. Large distribution companies can usually get terms or a letter of credit without a problem, allowing them to buy the product from the supplier easily. However, this can present a very big challenge for small and mid sized businesses that cannot obtain financing. At its worst, you may not be able to fulfill the order, forcing the client to go to your competitor. The fact is that a big order can either be a blessing, if you have the financing, or a true nightmare if you don't.
When faced with a very large order, most business owners try to go to the bank to obtain financing. If their business meets banking criteria, such as having three years of financial statements and showing significant profits, financing can be usually be obtained. But, if the business is new or has not reached profitability yet, there is little chance – if any – of obtaining any bank financing at all.
However, that doesn't mean you have to turn your client away. It just means you need to try a different financing avenue.
Purchase order financing, a long standing financing tool in the trade industry, may be the right solution for you. It enables you to fulfill large orders from credit worthy clients by providing you with the financing you need to fulfill the sale. By providing you with the necessary financing and letters of credit, you can pay your suppliers and deliver the big order to your customer. In the end, you end up realizing significant profits and growing your company.
It is important to note that purchase order financing is not a bank loan and usually not offered by banks. However, it is easier to qualify for than many types of financing. It has two very simple requirements. First, the client placing the order must be credit worthy. Large companies and state and federal government entities usually work well. Second, your profit margins on the sale should be close to 30%. As opposed to a usual banking arrangement, the purchase order financing company makes its financing decision based on the credit and stability of the company paying for the order rather than on your credit. This is a big difference and enables small and mid sized distributors to easily qualify for this type of financing.
Most purchase order financing arrangements also include a receivables factoring agreement. Although not widely known, combining these two types of financing usually allows you to reduce the total transaction cost. It's an industry trick that works well at maximizing your profits. Because of this, be sure that when you seek purchase order funding you work with a company that also offers accounts receivable factoring.
Purchase order financing is an ideal tool for small and mid size distributors, wholesalers and re-sellers who are making big sales and getting ready to take their company to the next stage of growth.
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 Brazil bank buying 50 pct stake in Votorantim unit - PR Inside
SAO PAULO, Brazil (AP) - Brazil's leading state-owned bank said Friday it will pay 4.2 billion reals ($1.8 billion) for a stake in the banking unit of one of the nation's biggest conglomerates to help ease credit in Latin America's largest economy ...
Ecuador says plan to renegotiate debt imminent - Marin Independent Journal
QUITO, Ecuador—Finance Minister Maria Elsa Viteri says Ecuador will announce its plan to renegotiate nearly 40 percent of its $10 billion in foreign debt before the end of next week. Ecuador partly defaulted on its foreign debt in December after a ...
GMAC to replace board; Chairman Merkin resigns - Newsweek
GMAC Financial Services LLC, the financing arm of General Motors Corp., says Chairman J. Ezra Merkin is stepping down effective immediately, as it names a new board of directors. GMAC said Friday it is naming the new board as part of its approval by ...
Berlin assurance on Commerzbank - Financial Times
The German government insisted on Friday it would not seek to exert influence over the day-to-day business at Commerzbank in spite of the partial nationalisation of Germany’s second largest bank. Analysts warned it could be five years before the ...
Madoff May Cost Insurers $1 Billion to Cover Funds (Update2) - Bloomberg
Jan. 9 (Bloomberg) -- Bernard Madoff’s alleged Ponzi scheme may cost insurers who cover financial institutions more than $1 billion as they pay legal costs for investment managers who gave client money to Madoff, an industry executive said ...
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