Hello KF Buyers,
We are A & G Food Distributors LLC and, we are excited about our first campaign with the Kickfurther community. Our need is overwhelmingly for short-term work in progress financing to fulfill orders from major grocery outlets. This first order KF will be used to fulfill is an order from ShopRite valued at double the amount we are raising. The inventory has already been produced and shipped; all that is required is that the supplier is paid the balance owed so that the inventory can be delivered to ShopRite. Our terms are net 30 / 2% net 10. We cannot assign this purchase order to Kickfurther because we working with an invoice factor who currently requires all invoices be processed by them.
This means that ShopRite may pay us after 30 days in full, or can choose to pay in only 10 days for a 2% discount on the order. Either way, we expect to receive payment directly from the factor within days of when Shoprite is invoiced. We have structured the co-op under the assumption it would take 30 days to receive payment, but we are actually quite confident we'll be able to make payment on the co-op in under one month.
We are an established business but reasonable and reliable purchase order financing is a missing ingredient handicapping our growth. The vast majority of the risk has been removed from this deal. The inventory is produced, it is shipped, and we have a strong buyer. The only missing ingredient is the necessary cash flow to release the goods. Provide us with what we need and we're happy to share in our earnings. We will work hard to make sure our buyers have a smooth and profitable experience. We see this as a long-lasting and mutually beneficial relationship.
We are already gearing up our next orders with Kickfurther so that we can be more proactive on future fundings.