Quick answer
Goods and payment rights may change hands at different points in a transaction. Contract language and shipping terms must match the actual fulfillment process.
Key takeaways
- Goods and payment rights may change hands at different points in a transaction.
- Map title, risk of loss and inspection rights from supplier payment through buyer delivery.
- Contract language and shipping terms must match the actual fulfillment process.
What to bring to a funding conversation
Map title, risk of loss and inspection rights from supplier payment through buyer delivery.
A confirmed buyer order, the supplier's written quote, product and delivery terms, and a margin worksheet show how the transaction will be fulfilled.
Identify the buyer, transaction amount and the exact date cash is needed; a specific packet is more useful than a broad sales projection.
How to compare cost and timing
List each step—supplier payment, production, shipment, acceptance and the buyer's final payment—on a timeline. Ask for the total cost in dollars if the buyer pays on schedule and if payment is delayed.
A fee quote should explain when charges begin, whether there are minimums, and who receives customer payments.
Decision point
Goods and payment rights may change hands at different points in a transaction.
Contract language and shipping terms must match the actual fulfillment process.
Compare this proposal with a bank line, trade credit or self-funding using the same transaction and dates. The lowest advertised rate may not cover the cash need at the right time.
Next step
Send a confirmed order or completed invoice and supporting evidence to National Invoice Factoring for an individual review. No financing terms or approval can be inferred from this general guide.
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Written and reviewed by the National Invoice Factoring funding team — specialists in receivables and trade finance since 2009.
