5 ms·
Are there ways to get the future beneficiaries of a new b2b product to fund its development, and that don't involve spending 6 month to raise funding? Sort of.
by andrewhillman 12y ago
Are there ways to get the future beneficiaries of a new b2b product to fund its development, and that don't involve spending 6 month to raise funding?
Sort of... I've been spending my free time learning the ins and outs of retail/distribution. It's not the most transparent industry but 'factoring' plays a pretty big role. If you are pitching/selling a physical product (iphone case) to category buyer from a Big Retail chain and they like your product, then send you a Purchase Order to buy your product, but you don't have the funds to manufacture/package/distribute the product you can find a Factoring Company who will fund the money in exchange for the Purchase Order from the Big Retailer. Some say the rates are too high and terms aren't great, but they can be a good source of backing. A lot of companies use Factoring. Perhaps maybe some Angels will start thinking about doing Factor deals in the near future.