Assume you are a small retailer selling women's fashions. What actions can you take to build a credit relationship with a manufacturer or wholesaler to ensure that you can use trade credit to purchase needed inventory for your store?
What will be an ideal response?
Answers will vary. Most manufacturers and wholesalers provide trade credit to retailers that allow the retailer 30 to 60 days in which to pay for merchandise. Most manufacturers and wholesalers do not charge interest for trade credit, but do expect payment within the defined time period. To build a credit relationship with a manufacturer or a wholesaler, the best thing a retailer can do is to always pay their invoices within the specified time period after delivery of goods.
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