With the advancements in the market and new ways of financing being introduced, there are a lot many companies that falsely advertise themselves. In the similar trend, the financing companies also have a number of companies that project themselves as something else from what they really do. Similar is the case with a PO Financing Company. The question arises how to pick the genuine company in the business. Ask these questions to get hold of the best:
1. Is it the mainstream business or you offer it complementary?
This is the question that will make it clear that is the business focused on offering purchase order financing services or is it just a side business. One should undoubtedly choose the one which has it in the regular business course rather than just another service. This is because of its complex nature and it required to have the proper knowledge of the industry.
2. What is the procedure to handle the deposit payments?
One more important thing that the companies ask for is a deposit payment before extending the payments. The prepayments create a confusing situation and hence there are methods to effectively manage it. It should be made clear in advance how will the payments be made so that the business can get familiar with the procedures.
3. How do you handle guaranteed payments?
These are the cases where the client has the right to return the unsold inventory and ask for full return. The only solution to this is negotiation to reduce the risk involved.
So, these are the three basic questions to ask your PO Financing Company along with the experience they have in the industry.
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