Imagine for a moment that three months ago you took your entire life savings and opened up your very own retail store. You bought store supplies, ran a few ads in the local newspaper, paid a lot of money for a custom sign to hang over the door and had a big Grand Opening. You stocked the shelves with just a few of each item to keep inventory from tying up all your cash.
The store looks good and business is slow, but improving. Then one day, in walks the president of a local club. His group wants to buy 5,000 widgets at $50 each. You're excited and thankful that this club chose your store to do business! Then reality sets in-- an order that size will wipe out your cash. What do you do?
Don't panic! If your store has trade credit then it's not a problem.
The store looks good and business is slow, but improving. Then one day, in walks the president of a local club. His group wants to buy 5,000 widgets at $50 each. You're excited and thankful that this club chose your store to do business! Then reality sets in-- an order that size will wipe out your cash. What do you do?
Don't panic! If your store has trade credit then it's not a problem.
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