Are you looking for financing for the operation of your business? Many companies other than banks and credit unions allow borrowing to creditworthy individuals and businesses. These supplier lines of credit can be used to buy that company’s products and services. These lines of credit can be a great way for a company to get hassle free financing for operations.
Many times an individual or business needs to purchase a product or service but does not have the available cash to make the purchase. Going to a bank or credit union may present a problem or a hassle. Buyers also may not want to use the available cash because they may have other obligations to take care of like operating expenses. These expenses can include rent, salaries and utilities.
Sellers want individuals and businesses to purchase their products or services so that they can be profitable. To help buyers purchase products or services, sellers may set up lending divisions within their company. Doing this not only eases the process for product purchasing but it builds long term good will with the buyer.
Make The Sale
To make the relationship beneficial for all, sellers or their financing companies will review the creditworthiness of a buyer. If the buyer is in good credit standing, the seller will extend credit to that buyer to be paid off over a period of time. Many times the credit is available but not used by the buyer. Other times the credit is available and used by the buyer. Typically there is a limit to how much credit can be used by the buyer.
So if you’re a startup or an established business looking for financing, a supplier line of credit can provide a hassle free way of getting what you need to operate the business. Many times all a buyer has to do is inquire and be creditworthy in order to receive the line. So ask.
About the Author
It’s Founder, Kolonji Murray, has worked as a banker, accountant and financial advisor for a number of leading firms. He holds a degree in Accounting from Hampton University and is active in a number of civic and industry organizations. Along with being an Accountant Mr. Murray is Series 7 and 66 licensed in NY. He is also life, accident and health, variable life/variable annuities insurance licensed.