Rick hit that one out of the park. It`s that all important Letter of Credit (LC).

Any major leanding insitution will give you a LC if you show just cause for the money. This is not a loan. It is simply a way to transact business and everyone involved gets paid, guaranteed.

Not to bore, but the factory produces documents that are verified before the shipping company (really much more than that), like UPS`s container division, confirms the container(s) content and flips it onto their ship. About the time the ship leaves the harbor bound for Wally World or a brand`s distribution center, you (the OEM ala EDIG) get your money via the LC issuing financial institution. The Wencor deposits and PO are used to secure the LC. Over time and many transactions, small companies can negotiate a better LC rate from their bank or get terms from the actual manufacturer (not usual unless the US arm of a large manufacturer makes that part of the deal to brands and / or direct to retailers -- that would be what I do)

Yes, EDIG is ``fronting`` a portion via a LC, but it`s not half the manufacturing costs. It is half of what Wencor pays EDIG. There is margin in the balance owed. So, if EDIG makes 20% (WAG) and gets a 50% deposit, then only 30% is owed to the factory when production is complete and the other 20% pays for brownies to be eaten by all who attend the ASM.

Now the real question is who puts the pot in the brownies so the attendees become sheep again....`cause that may have been on the table when I first bought EDIG in May, 1998.

John