For a period of nine months from the close of the offering, the securities can be resold only to residents of the state. The supplier isn t paid until the goods he provided are sold. Strategic alliance is a current buzzword which generally means that several subcontractors band together to offer a complete package of services to the end user. Leasing, Factoring and Chattel Mortgage Lease back has been a popular way for larger companies to convert real estate into an infusion of cash. The company sells a building and then leases it back from the purchaser.
Smaller companies can use the same technique for big ticket, specialized equipment.
Each time something is sold, depreciation may be taken on the purchase price. Factoring is selling receivables at a discount to get cash now. A chattel mortgage is a loan secured by specific assets, usually items in inventory. To guarantee the lender s position as a secured creditor, a chattel mortgage must be very specific and must be rewritten every time the collateral changes, i.e., if part of the inventory is sold, or if inventory is increased. Other ways of raising money against inventory are field and public warehousing.