Of course, the trick here is to get your goods shipped to you, and sell them before you have to pay for them yourself. The owner or financial officer may give you half the order on credit, with the balance due upon delivery. Tell the owner or financial officer about your business, and explain that you need to get your first orders on credit in order to launch your venture. Show the officer the financial plan that you have prepared. If it's a larger business, ask to speak to the chief financial officer or any other person who approves credit. When you visit your supplier to set up your order during your startup period, ask to speak directly to the owner of the business if it's a small company. One of the things that will help you in these negotiations is a properly prepared financial plan. While this is a fairly normal practice, to raise money during the startup period you're going to have to try and negotiate trade credit with suppliers. They're going to want to make every order c.o.d (cash or check on delivery) or paid by credit card in advance until you've established that you can pay your bills on time. However, when you're first starting your business, suppliers aren't going to give you trade credit. Your terms might be net 60 days from the receipt of goods, in which case you would have 30 extra days to pay for the items. For example, suppose that a supplier ships something to you, and that bill is due in 30 days but you have trade credit or terms. Normally, a supplier will extend you credit after you're a regular customer for 30, 60 or 90 days, without charging interest. The first source of business money we'll discuss is trade credit. It will give you the added confidence of business savvy. You can be creative in finding ways to raise profits, without having to look to external sources.Coming from a stronger position (with less debt on hand), you look more desirable to external lenders and investors when the time does come to raise money through these routes.You won't have to pay the high interest on borrowed money.Your business will be worth more because less money has been borrowed, and therefore, no equity positions had to be relinquished.There are a number of advantages to using the various methods of bootstrap financing:
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