How important is the financial position of the Purchaser and OEM Supplier?
The financial position of the Purchaser should be strong with respect to the funds available to pay the amount of work the OEM Supplier completes. That is, while the Purchaser may not have a tremendous amount of cash with which to complete a transaction, the Purchaser should already have access to the funds through a securing bank that can ensure payment upon completion of the work. The manufacturing service provider should maintain a financial position that secures the necessary funding for all associated costs of manufacturing the product for the Purchaser.
