By Andrew Tananbaum
On January 28, 2017, the Chinese New Year begins and, in observance of the holiday, the factories in China will shut down for more than a month and all production will come to a halt. For U.S. retailers and wholesalers, this means that goods for the upcoming spring/summer retail season must be made and shipped prior to this shutdown. However, with Chinese-based manufacturers asking for payments upfront, it is unrealistic for small- to mid-sized businesses to lay out cash for goods that won’t be on the shelves for months, making it nearly impossible for them to buy direct from China.
To help aid small- and mid-sized U.S.-based importers and retailers, Capital Business Credit has expanded its Supplier Early Payment (SEP) Program to ensure goods for the spring/summer season are delivered before the Chinese New Year shutdown. Now, small retailers will be granted extended payment terms, while ensuring their suppliers get paid up front and that all goods are shipped on time. The program facilitates payment to the foreign supplier upon shipment, and then provides the U.S retailer or wholesaler with up to 120 days to pay CBC back.
To learn more about CBC’s Supplier Early Payment Program, click here.