Debra Guzov contributed to the article, “Making the Most of Memos”, that was published in the February 2018 issue of Rapaport Magazine. Read the article here. Memos in the jewelry industry, also known as consignments, can be used to provide merchants with specific inventory from the supplier, without having to pay for the costs of the inventory upfront. The problem in the jewelry industry is that the inventory sent on memo typically has a high value, creating a high risk for the supplier. However, jewelry memos can be an effective tool between merchants and suppliers, as long as the terms in the memo are documented correctly and adhere to the Uniform Commercial Code (UCC).
Read the article for more on the legal implications and future of memo financing in the jewelry industry.