Winning in the Cash Flow Business

2008-11-24 13:16:17

( Health )



Winning in the cash flow business is not as difficult as it may sound. If you are a business owner, you may want to take advantage of the credit that suppliers will often offer. Some suppliers with huge capital can afford to give your 30-day, 60-day and even longer credit.

This is good news for you if winning in the cash flow business is your goal. Winning the cash flow means you can use your supplier's money for the length of the term for free.

Be aware though that companies that allow long terms have products that are slow moving. But you still can get decent terms from companies that supply fast moving products. Those kind of companies can help you in winning in the cash flow business.

You can use the extra cash to buy supplies on cash basis. You will have to identify suppliers that offer discounts for cash purchases. This is really amazing as you can use the cash that isn't yours to purchase products in cash and earn a handsome profit.

Of course you have to take care that the products you purchase in cash are also fast moving products. Otherwise, your excellent plan to winning the cash flow business can fire back. If you don't sell the items you purchased in cash fast enough, you might be short in cash to pay the supplier that gave you generous credit on time.

You do want to take care of your business relationship with those suppliers that allow you generous terms. So be sure that you pay them on time every time. Also take care to keep your transactions with other companies confidential. Although they probably know that you are taking advantage of the money they give you as credit, it is only polite to not disclose your business transactions with other companies.


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