advertising section purchase order financing
finance “society”, I discover many
members of it who are scared of
purchase order financing and what it
represents. Unfortunately, they would
rather forego a chance to put revenue on their books, instead of doing
diligence and examining the potential
which purchase order financing (and
Hartsko) can bring.
Remember that we are “temporary”
and “transactional”. I understand that
you and your clients or referrals are
going to use Hartsko only when it is
necessary and justified. (I am never
offended, and I certainly understand.)
When I attend different CFA special
events, I enjoy hearing all the “war
stories” from peers. These are some of
◗;An importer of toy helicopters where
an ABL was forced to halt their line,
because of collateral problems. This
was just weeks before the deadline
where the importer was supposed
to fulfill inventory to one of their
largest retail customers. Because
Hartsko goes through this process
so routinely, every step including the
inter-creditor agreement was like
a jet flying on automatic pilot! We
enabled the importer to survive and
the ABL to preserve their relationship
at the same time.
◗;Helping an importer in shipping
Toyotas from domestic and overseas
dealers to Vietnam. Consider the
artistry of shipping on board and
taking assignment of proceeds on the
letters of credit issued for payment.
It requires depth in the wording of
contracts and understanding LC’s.
Hartsko made the importer’s banker
look good because we didn’t say “no”
and we were able to succeed on this
financing tight rope act.
◗;A Canadian distributor of high-end
bicycles had a deal with low margins.
Their factor couldn’t go any further.
Hartsko became a compromiser get-
ting all parties to cooperate a little in
order to make the transaction work.
I don’t believe I am being immodest
when I tell bankers, factors, and asset-based lenders who make inquiries about
Hartsko that, “we wrote the book on
purchase order financing”. In the eight
years that Hartsko Financial Services has
been established, there aren’t too many
types of deals which we haven’t seen
in one form or another. And whether it
is legitimate or a scheme, we have an
enormous learning curve and we’re wise
to most everything.
I am very proud of my team with
the talent, experience, and mechanics they bring to developing transactions, analyzing them, then starting
the process to fund. We are reminiscent of that classic movie, “The Dirty
Dozen”! Because the Hartsko team is
very much “in the trenches” of various
distressed business owners who try
their problems and challenges on me,
out for size.
It’s why I welcome and embrace every
lender or broker who has made a referral
to Hartsko, who has thought enough
of what we bring to these financial
equations, to seek us out us. Therefore,
I owe my commercial finance colleagues
and business associates my acumen on
whether a deal can succeed. I recognize
their right to share in whatever opportunities evolve.
Despite all of Hartsko’s outreach
and aspirations to work with our
In each case, Hartsko created cash-
flow and breathing room for thirty-120
days. Hartsko enabled a business owner
to accomplish a deal where under other
circumstances they may have lost the
opportunity. It is why Hartsko’s volume
has grown by about 1/3 in the past year.
RICHARD EITELBERG, CPA