Debt Finance

 

 

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How your suppliers can help to balance your fluctuating capital needs 

   
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.  

 

 

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!

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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Last updated: January 07, 2002.