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Capital sources: Supplier credit

Small Business BasicsYou 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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