As we approach the holiday season, it is becoming clear that this holiday season is not going to be a good one for retailers. And that problem, of course, will trickle... change that ..... gush like a geyser into their suppliers.
The logic is simple. Consumers are not planning on buying much this year from retailers. Thus, retailers won't be buying much from their suppliers. And likewise, these suppliers won't be buying much from their own suppliers either.
This will affect one group of companies that uses purchase order financing: Product resellers. Companies that bring goods from abroad (usually) to fulfil retailer orders.
Even those that still get orders will need to cope with a much longer wait to get paid, although invoice factoring can be used in these circumstances
Unfortunately, not everyone will survive this shakedown. But those that do, will probably emerge stronger as they will have even stringer ties with their customers.
---
Looking for information on purchase order financing? Read the purchase order finance blog. More information about business loan alternatives as well.
No comments:
Post a Comment