Start-up companies often use trade credit from suppliers to buy equipment and fixtures for their business.

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Start-up companies often have limited funds and may not have access to traditional financing options. As a result, they may rely on trade credit from suppliers to purchase the necessary equipment and fixtures to operate their business. Trade credit allows the start-up to postpone payment until a later date, typically within 30 to 90 days, which can help to conserve their limited cash flow.

Start-Up Companies Often Use Trade Credit from Suppliers to Buy