verbal croquis


factoring

Posted in general,people i know by verbalcroquis on February 8, 2006

for Danielle:

Basically, if you are factored, a financial institution serves as your middle man between you and the store you need to collect money from. Terms and fees vary according to situation, the timeline goes basically like this:

  • store places order of $1000 worth of goods
  • you check in with your factor to see if they approve credit for that store for $1000
  • if it’s a go, you invoice the store, and send your factor the paperwork
  • the factor gives you that $1000 up front, minus their fee, so that you can push that money immediately into your business
  • the factor then does the dirty work of collecting the $1000 from the store

Thanks for reading and all your great comments! You’re a great ego stroke, honey. 😉

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2 Responses to 'factoring'

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  1. Danielle said,

    thanks for answering my questions =) … oh, and when I call you head designer, that’s no ego stroke – that’s what you really are!

  2. henri-v said,

    Ooh, I have another question that came up while reading something else for State of the Fashion Union coverage:
    If a department store picks up your line wholesale, do they really pressure you buy back your goods if they aren’t selling? I’m going to try to locate that post to make sure I read it correctly. I can understand retailers telling you to take back your stuff if you have a consignment type of arrangement, but I didn’t think the larger department stores did that to the designers they selected to stock.

    I’ll send a link to that material once I find it …


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