
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!
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??