Not always, most companies have contracts that specify payment terms and some of them have terms as long as 90 days before they have to pay, with no upfront payments due.
He may have had to borrow to produce product and may not get paid for awhile. Very few companies pay upfront for any product that they purchase.
I worked as a buyer for a 70 million boat company and only one vendor (Out of about 1500) that supplied us required payment upfront prior to shipping product to us.
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