Some people are able to get factored their first season, I did. However, you’ll need some sales first…so just in case you aren’t able to land one, have a cash flow contingency plan (cash, credit cards other loans). Once you get a good number of orders then it would make sense for you to start approaching factors.
Also a factor will definitely inquire about your startup capital and most want to see about 80-100K.
All this is not set in stone….there are factors willing to take on new companies with big potential so do your research and ask around. It’s possible!
category: 
SUBMIT A QUESTION
February 4th, 2008 at 9:45 pm
This is my second year with my line. Last year I wung it on a wing and a prayer, actually on my credit cards. I did very well although the interest charges that I had to pay out killed my profit a bit so I really would like to find a factor for this year. Two questions:
1. when they are looking for $80-100K is that money that you have after you have finished production and paying for trade shows and other expenses
2. where do I look for factors??