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Re: mckinley1 post# 153371

Monday, 07/02/2018 6:22:24 PM

Monday, July 02, 2018 6:22:24 PM

Post# of 346737
My business has been profitable for six straight years and I have multiple credit accounts. For a business to be approved for these lines of credit actually speaks well of the business. Businesses that do not use or have issues receiving credit are put behind the 8ball. These companies remain stuck in a cycle. Daily operations, payroll, inventory, insurances, etc are typically paid through a credit account, then paid off monthly. Similar to a well ran personal credit. I would much rather pay one bill a month than 20. I think you are confused about lines of credit in business. Lets say Amazon puts an order in for $100,000 worth of games. Amazon is good for it no doubt. But why use our cash to finance their order until we get paid. That is where the line of credit comes in. We keep our cash and pay our suppliers with the credit. Amazon sends $, then bank is paid. All the while, we kept the cash in our accounts. It's actually a very simple concept, hope this helps you understand.