Starting up your business
Most business owners understand that a traditional loan is one way to fund a business startup. A cash loan is one source that provides credit. Through exchanging something for a source of value for a promise to pay it back. The other type of credit you may be eligible for is vendor credit. I have a friend that just started her own business and she uses this source. Vendor credit allows anything that is shipped to you with the terms of net thirty days or more allows you to add and collect your markup, a markup is your gross profit, before you have to pay the vendor. This is not as good as a long term loan, which allows time for you to establish yourself first. If you make carful purchases, you may be able to turn inventory quickly and pay for it after you have a sold it to your customers. Having a business that only takes special orders to be shipped directly will allow you to collect your sale and send the purchase portion off to your vendor. It is a good idea to check all the recourses available before choosing which will be best for your business.
No comments:
Post a Comment