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Trade Credit Finance - The largest source
of short-term finance.
You need to make purchases on a regular basis from
a supplier or various suppliers. However these purchases are creating
a heavy short-term burden on your cashflow.
Without good cash flow, you can have difficulty
financing day-today operations such as paying employee salaries and
purchasing the inventory necessary to generate sales. Poor cash flow
can make it especially difficult to invest in purchases needed to
propel your company's future growth. While understanding the concept
of cash flow and the strategies for improving it, is easy. Putting
that understanding into action can be more challenging.
Cash flow simply refers to the movement of cash
into and out of your business. Typically, money comes into your
business in the form of cash received from customers at the time of
sale, cash received upon collecting accounts receivable, and income
from other activities, such as the collection of sales commissions.
Cash flows out of your business to fund everything you purchase to run
your business: inventory, raw materials, payroll, expenses, rent,
utilities, interest on loans, equipment lease payments, etc.
With Trade Credit - your cash flow problems are
solved. The suppliers or suppliers supply goods or services to your
company on Credit Terms (30-120 days) or up to 360 Days on a Standby
Letter of Credit. The suppliers are happy because they have a stronger
balance sheet. You are happy because you have made sales that would
not be possible without trade credit finance and, we're happy because
we were able to participate in the opportunity and profit as well. In
short everybody wins.
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