Credit owing to potential suppliers can be a source of financing for a new business.

Question

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As a new business, suppliers may offer credit terms to enable you to purchase their products or services. This can act as a form of financing for the business, as it allows you to make purchases without having to pay cash up front. However, it is important to manage credit effectively to avoid overextending the business and damaging relationships with suppliers.

Credit Owing to Potential Suppliers Can Be a Source of Financing