Supplier credit

Supplier credit is essentially like getting a “tab at the bar”. Your suppliers provide you with stock (the goods or merchandise kept on the premises of a business or warehouse and available for own use, sale or distribution), raw material and/or services on a 30 day account allowing you to sell or use their products without paying money upfront. This is a useful way of financing a business provided that you are able to sell and collect payment before you have to pay the supplier.