Would an anyone invest in this?

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Would an anyone invest in this?

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N23C

posts: 9

Aug 28, 2008 9:03 PM ET Quote Report Abuse

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I have a produst which i supply to grocery stores myabe about 50 stores right now. recently I contacted a national distributor who said they would agree to buy my product from me and distribute to 7,000 stores nationwide. I by no means have the capital for this so I was thinking that I would need an investor to come in and help me grow. To give you an example I would need at a minimum 105K to buy product the profit on that would be 50k after expenses. and this would be the minimum revolving every month. I need advise as to weather anyone thinks this would be a simple pitch and how I go about finding someone.

Please help

EngineersCanSell

posts: 163

Aug 29, 2008 7:54 AM ET Quote Report Abuse

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Can you get a purchase order from the chain? I used to run a little gardening product company and we were faced with a similar situation. I asked the chain to cut me a PO that I could take to a lender as leverage.

I had an offer for a loan from the bank based on that as well as a private investor. Some call this "purchase order funding". Based on your snippet here, it should be quite easy to get the money once you have the order in hand and can prove that you can manufacture and deliver according to their terms.

And I`d be straight up with your buyer and tell him/her what you`re up to.

Where are you located and can you tell us what you`re selling? I`m guessing that some on this board could put you in touch with the right person.

robertj

posts: 1458

Aug 29, 2008 11:50 AM ET Quote Report Abuse

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I have a product which i supply to grocery stores miyabe about 50 stores right now. recently I contacted a national distributor who said they would agree to buy my product from me and distribute to 7,000 stores nationwide. I by no means have the capital for this so I was thinking that I would need an investor to come in and help me grow. To give you an example I would need at a minimum 105K to buy product the profit on that would be 50k after expenses. and this would be the minimum revolving every month. I need advise as to weather anyone thinks this would be a simple pitch and how I go about finding someone.

Please help

Acquiring funds as an advance on a purchase order (aka Purchase order funding) is doable - if your situation meets the basic requirements.

Send me a PM if you want to discuss specifics

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

Business Growth Masters, LLC -
Capital Catalysts for Entrepreneurs
Home of the Scalable Business Plan and QuikStart Capital Programs
http://www.bizgrowthmasters.com
info@bizgrowthmasters.com

mlebovits

posts: 88

Aug 29, 2008 2:02 PM ET Quote Report Abuse

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Purchase order financing or vendor assurance letters could get you the money you need to produce the orders.

Factoring would offer the fastest and easiest way to finance the accounts receivable to raise working capital, but only after you`ve shipped the product and the customer has confirmed acceptance. Factoring can be your revolving line of credit.

N23C

posts: 9

Aug 29, 2008 2:42 PM ET Quote Report Abuse

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Yes they will issue a PO and also want to write up a contract. I do not have good credit so I am not sure the banks would be much help. Would I still be able to go with a private investor?

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