For some reason, people always get confused by the term Guaranteed Sale. More importantly, most new resellers incorrectly believe that their client is guaranteeing their sale.
WRONG
A guaranteed sale is an agreement by which the vendor agrees to TAKE BACK merchandise that their client was not able to sell. Said differently, if you offer guaranteed terms, you have not made a sale until your client has made the sale. Note a very good position to be in.
More importantly, guaranteed sales will kill any chances of using purchase order financing for that order. This is for a very simple reason. The purchase order financing company usually gets paid once the end client pays their invoice. Whoever, with a guaranteed sale there is no way of knowing the amount of the final invoice. As a matter of fact, the end client could return the whole shipment.
This is why a guaranteed sale will also kill your chances of using factoring (accounts receivable factoring).
---
Looking for factoring in florida? Please consider doing business with us.
No comments:
Post a Comment