Financing -- Loans/Company Wants My Invention
Hello, A large company wants to be the exclusive distributor for my invention globally. However, I need money to pay for the production tooling costs. My business doesn't have a credit history so that I can take out a loan. What do you advise? Would the large company be willing to pay me money up front (when they order) or will that be wrong to ask them to pay for their order up front? I've done everything in cash thus far, but now the expenses are exceedingly larger than my personal finances.
Thanks for your advice
At this point you will need to decide how much you trust this part company, and what percentage of your company you want to give up in return for the necessary upfront capital to get your business launched.
You should also be having this conversation with friends and family who believe in you and your product.
You also may want to seek professional advice to guide you through this process, as many an entreprenuer has been separated from his ideas for very little money, a fraction of what they are worth.
Also, consider professional investors, angel investors, others, who may want to invest in you as well.
Usually it is better to have more than one investor to assist you and give you guidance.