💡 Finance Term of the Week: Supplier Credit

When your supplier lets you get goods or services now and pay later — often 30, 60, or 90 days after delivery.

Why it matters:

  • Helps you keep cash in your business longer
  • Lets you sell products before paying for them
  • Builds trust and stronger relationships with suppliers

Example:

You receive stock worth 100,000 on April 1st with 30 days supplier credit. You don’t have to pay until May 1st — giving you time to sell and use the cash to pay your supplier.

Do your suppliers offer you credit terms?


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