About Funding for Clothing Manufacturers

DorezDorez Posts: 3subscriber
edited July 2007 in Startup Funding
Our company has started getting a lot of interest from stores (and a few test orders).  We manufacture plus-size clothing.  We also sell online.  But one of the difficulties we`re facing is not having enough funding to create inventory.  We also need a workspace.  There are a few other obstacles, that I would rather discuss privately.  But my question is... would we be able to get factored for small orders?  Or would we need to seek an investor? 
Any advice is appreciated.
Thanks!

Comments

  • robertjrobertj Tampa Bay, FloridaPosts: 0subscriber Member
    One unique feature of factoring is that the Factors look at the credit worthiness of the customer (buyer) rather than the supplier. So if you are selling to companies that have excellent credit rating - you can probably arrange to factor those invoices. However, for small amounts, you may have difficulty attracting a reputable factoring company. Also, it can be expensive if you use it as a "long term" financing strategy.
    Getting an investor is another possibility but not the only one. There are at least 50 ways/sources of business capital. Not all are appropriate for every situation.
    The first variable in determining YOUR optimum funding method is:
    How much capital do you need ?
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