Forums: Discussions for entrepreneurs and small business.

Where do I start with getting favorable terms from an overseas manufacturer?

How do I determine what is favorable for our company?

What would I say?

My goal is to get the purchase order, have the products manufactured, packaged and delivered to the retailer. Get paid, and then pay the manufacturer.

The terms would need to allow time for this.

 

Sounds like you plan establishing terms like Net 60 or Net 90 with the manufacturer of your products. Depending on what line of business you are in, the turnover you will be generating for the manufacturer, and your flexibility to reach out to other manufacturers, you might even have a starting point for your negotiations. In reality however, most manufacturers will require some sort of payment guarantee such as a Line of Credit (LOC) or standby credit facility to accept terms like this.



-------------------------


Jackson Steiner
http://www.JacksonSteiner.com

Advanced Document Design for entrepreneurs, intermediaries, and the financial services industry.
http://www.Publications.FastVentures.com