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| Working
Capital
As with all businesses, varying
need for working capital fluctuates from day-to-day. To overcome some
of your most financially demanding periods you might consider setting up
an agreed overdraft facility with you bank. By doing this you can
rely on extra capital when it is most needed.
Another way of assisting you
when the going gets tough is through debt finance. Debt finance is
achieved through your suppliers, via agreed extended credit terms.
However, this can only be achieve if you have a close relationship with
your suppliers.
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Building a close and
honest relationship with your supplier and earning extended terms can in
effect help to ease cash flow problems enormously.
However, this
relationship will not be achieved through delaying payment!
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If your supplier is familiar
with your business on the whole, and understands your working strategy
and financial status, then they will be more willing to agree extended
terms.
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