Trading – One-Month Credit

All calculations are only for demo purposes. They do not reflect true business transactions.

Previously, this section mentioned on Centralized Purchasing which paved the way to a very good trading opportunity – One-Month Credit.

One-Month Credit is a trading facility given by suppliers. Generally, this is a very rare opportunity given to sundry shop owners but acehnese traders as a whole are seen to be prompt in credit payments. When we promise to pay in one month time, it means, we will pay in one month time.

There are three major reasons why we are given this facility:
a) Since we have moved upstream and becoming wholesalers and to certain products as sole-distributors, we give ourselves the facility.
b) We are so known as good sellers that suppliers really don’t mind given us the facility.
c) That we control certain brands, suppliers of other brands have no choice but to offer us the facility so that their products are accepted in our shops.

At least, 30% of our inventories are built by this facility which means we have the advantage of having 30% extra cash allocated for purchasing for the whole month. Historically, once the extra cash of 5 to 6 shop owners combined, it is enough to start a new shop. On the following months, the new shops will contribute to the growth.

Inderawangsa

This blog has a new entry which is on Music Theory.

Elitism Exposed: Part 2 – Iblis a.k.a. Lucifer, The Existence of Evil
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Song and Music by Azer Mantessa