A good distributor can make or break your product line. Here's how to find the right one.

Deziree Williams, Sugar Free Baby, Los Angeles
I have a children's eco-friendly clothing line. We are taking it slow because we are branding our line and are in some ways picky about who we sell to. I have recently been approached by a distributor, but I'm not sure if this is the best way to launch into the market. Any advice?

By Emily Maltby, CNNMoney.com writer

By the look of your Web site, SugarFreeBaby.com, it seems you are off to a great start. You've evidently taken the right steps to approach the smaller retailers already, as your line is already in a number of stores.

You are wise to be conservative about which storefronts represent your line. But as you expand, part of your decision about working with a distributor will depend on whether you want to stick to the small stores or get to the national chains. You can continue to go it alone if you stick to the smaller outlets, but a distributor is essential if you want to reach out to the big guys.

"Large retailers want to see someone in the buyer's office that they already has a relationship with – someone who knows the system," says Gordon Cundell, a former assistant buyer with Sears Canada and current president of the Canadian Sporting Goods Association, an information service for sports equipment and apparel buyers and sellers.

Working with a distributor could be a smart move even if you want to indie shops. "Suppliers often have the passion needed for a successful product, but no business sense to get the product in to the right places," Cundell says. "Chances are the average clothing designer doesn't even know all the distribution channels that are available."

And of course, even if you have the knowledge to do the job, you may be stretching yourself too thin by taking on the daily activities of a distributor.

"One benefit of using a distributor is that ideally you have one place to ship your goods to. They break it out and do all the individual shipping and selling for you," says Rob Reger, president of Cosmic Debris and creator of the gothic Emily the Strange product line, which is sold internationally, in 200 independent boutique stores, and in large chains such as Hot Topic and Borders. "This leaves you with designing and manufacturing, keeping the quality control in your hands."

If you decide to work with a distributor, picking the right one is critical. What should you be looking for?

Both Reger and Cundell say your distributor's vision is crucial to a successful relationship. You need a partner who fully understands what type of customer you're targeting, and who has ties to retailers that serve your market.

"Taking it slow and building your brand with a specific core customer in mind is wise," Reger advises.

"Find out what they already distribute," Cundell says. The other lines they represent should be similar but not exactly the same as yours.

You'll want to find children's clothing distributors who don't currently have green attire in their lineup – if the distributor already has eco-friendly offerings, "you risk the lines competing with each other," Cundell says.

Give us your advice: Check out recent “Ask & Answer” questions.

Related links:

How fashion designers break in

Get your clothing line into gift shops

An expert rundown on the best payment methods for overseas transactions.

Karen, Fogelsville, Pa.
I work for a small business that sells a product to veterinary distributors worldwide. What is the best method of receiving payment from overseas vendors? Is it better to use wire transfers or credit cards? We would like to avoid any extra charges for credit processing if possible.

By Blake Ellis, Fortune Small Business contributor
Dear Karen: This is a tough question many small businesses are grappling with. While the weak U.S. dollar is a big advantage to exporters, it’s not always easy to know what payment method will be most beneficial to your company.

Exchanging foreign currencies

John Green, a partner at Payment Metrics explains that there are generally three options: wire transfers via a bank, credit cards, or non-bank financial institutions.

An important factor in deciding which method to use is whether or not you are allowing customers to pay in foreign currency or U.S. dollars. If customers are paying in foreign money, Green recommends using non-bank financial institutions such as Tempus Consulting, Associated Foreign Exchange, Custom House, Commonwealth Foreign Exchange and Cambridge Mercantile Group.

“These international business transaction specialists are a not so well-known option, but they have been serving the market, in some cases for 30 years, with a track record very comparable to – if not better than – the banks in handling and delivering overseas transactions,” he says. These institutions exchange payments from your customers and send the money in U.S. dollars directly to your company.

Comparing fees with your bank

If you don’t have to deal with exchanging currencies, Green advises you to compare the fees your bank will charge you for wire transfers versus credit cards.

"You will likely find that for small transactions, under $500 or so, the credit card transaction may prove to be less expensive," he says. "For larger transactions, your bank is usually the better way to go.”

Linda Bustos, emerging media analyst at Elastic Path Software, says that while wire transfers may seem appealing because some banks don’t charge the company any additional fees, they always charge the customer, who might want to buy from your competitor instead if they offer a similar product and allow credit-card payment.

"The advantage of accepting credit cards or PayPal payments is that you don't have to share banking information, and it's less paperwork. This may be better for small orders or one-off sales, despite the transaction fee,” says Bustos. Daniel Salcedo, founder and CEO of Open Entry, an e-commerce platform, agrees, saying, “We accept payment both by credit card as well as wire transfers. However, even though we do have to pay the credit-card processing fee, we find it much better because tracking the source of the incoming wires is extremely difficult if you get more than a handful per month.”

So, while it can be tempting to avoid the obvious credit card fees, the other methods have underlying costs associated with them that may outweigh credit-card processing fees.

Long story short, assess the size of your transactions, talk to your bank about its wire-transfer fees, and see how these compare to those of credit cards. Also, always ask your potential customers what their preferred method of payment is. Chances are they already have considerable experience with international transactions and you can adopt a system that works well for both of you.

Give us your advice: Check out recent “Ask & Answer” questions.

Related links:

Watch Your Language!

An entertainment business eyes worldwide expansion

How to go global

For overseas travel, domestic phones are the best bet

Chris Lambrinides, Vernon, N.J.
I want to sell a line of products on my Web site and in my store. The manufacturer refuses to sell to us even if we pay in advance. Is this legal? He sells to dozens of other distributors across the country. What do you recommend? Leave a comment below with your answer.

Give us your advice: Check out recent “Ask & Answer” questions.

Related links:

How to grow fast in down times

Cash and a strategy for growth

When middlemen discredit your goods

Ocean is considering a loan to help his company survive a cash crunch. What do you think the company should do?

JoAnn is trying to find a broker for her distribution business. How did you find the right broker?

Our experts gives tips on finding the right investment group grabbing its attention. Are you having trouble receiving financing from investors? Share your troubles by writing here and read about acquiring startup money here.