Does anyone have experience with outsourced distribution channels?

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by a searcher from Wabash College
in Chicago, IL, USA

1yr ago

Does anyone have experience with outsourced distribution channels?

I'm exploring a deal for a industrial supply/MRO type distributor, but the company does not own the main distribution facility where it stores inventory, and does not have any lease or contract with the warehouse itself. The company does pay a monthly fee/rate for storing/shipping etc, but its negotiated ad hoc - no regular fee schedule.

Has anyone come across these type of deals? Is this type of 'gentleman's agreement' arrangement feasible for an SBA loan?

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reply by a professional 1yr ago
from Stanford University in Healdsburg, CA 95448, USA

Ditto to what Patrick said above. Very normal, but details and documentation are important.

reply by a searcher 1yr ago
from United States Air Force Academy in Austin, TX, USA

Luke, thanks for the tag but unfortunately I’m not able to help with this one.