TERRITORY 04

Build Buying Power

Buying power is other people's confidence in your business, expressed in dollars. This territory covers business credit, bank lines, personal guarantees and how suppliers actually decide how much risk to take on you.

Business creditBank lines of creditPersonal guaranteesVendor terms and Net 30Trade references

Definitions in this territory

SUPPLIER CREDIT

Net 30

Net 30 means the full invoice is due within 30 days of the invoice date. The supplier gives you the goods now and takes payment later.

SUPPLIER CREDIT

Vendor terms

Vendor terms are an agreement that lets you receive inventory now and pay the supplier later, up to an approved limit.

CREDIT

Business credit

Business credit is your company's own borrowing history and reputation, separate from your personal credit file.

Playbooks

8 MIN

How Vendor Terms Actually Work

Buy on prepayment first, build a short record with that supplier, then apply with an entity, an EIN, business bank references and two or three trade references who will confirm you pay on time.

Think your business is ready for purchasing terms?

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