The modernization of manufacturing facilities in China, India, and other Asian nations has increased the chances that finished goods are imported and not manufactured domestically. Foreign suppliers often insist that small companies pay upfront, before shipments leave factories and warehouses. Such payment terms leave small-business owners with little operating flexibility, forcing them to either cobble together cash quickly or cancel orders. Further, funding sources for small businesses - those with under $50 million in sales, say - are intrinsically limited.

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