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Capital sources: Supplier credit
You
may already be using suppliers credit without knowing it. When a
supplier ships goods to you and bills you, they generally give you
30 days to pay. That's really a short-term, interest-free loan.
By the same principle, some suppliers will extend long-term credit
on machinery and equipment, requiring a down payment and installments.
Some companies will even lease the equipment over a period. Instead
of buying outright, you pay a monthly "rent" and the leasing company
retains the title to the goods.
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