Are you looking to scale your retail business? Trade credit can give you an edge on the market. Read more on how to make most of it.
What Is Trade Credit?
Trade credit is an agreement between two businesses whereby a buyer can purchase products on the account. They can do this without having to pay upfront for the items, instead of agreeing to pay at a later date scheduled in by the supplier. Trade credit is usually thought of as a finance option for retailers, as it can increase your assets as a business while giving you the time and space to pay for the value of the goods. Instead of paying all upfront, the payment date is deferred into a later date in the future. Usually, it requires only a small interest to be paid on top. At Toolsale, we offer payment terms that are longer than most other suppliers – up to 120 days! This makes us different from many suppliers out there, and that’s why retailers use us as their preferred procurement agency.
Why Choose To Use Trade Credit
There are plenty of advantages to your retail business using trade credit, but one of the most well-known reasons is that your business can access working capital finance and you can do it at the lowest possible cost. With the repayment conditions often being generous, a company can fuel its growth better. Businesses that have a good credit history are usually ones that enjoy strong trade agreements as the terms are easy to meet and maintain long-term.
Some of the most significant advantages of trade credit include:
- Scalability. By freeing up outgoing cash flow, retailers have more reserves for growing their business.
- Businesses Get An Edge. Allowing you to have goods on credit is an advantage over your competition. Using trade credit, you can be more flexible and adapt much faster to customer demands. It provides you with access to goods even when you’re not flush for cash.
- Boosts seasonal sales. You can stock up in time for your peak selling points in the year without paying anything upfront.
- Easy Arranging. When you have a good credit history, you can meet the requirements easily and arrange the payment plan suitable for you in no time. Trade agreements are quick and easy to use.
- Better Reputation. You want to build relationships with suppliers to ensure that you are taken seriously. Having a good trade credit history makes you desirable as a preferred retailer.
- Bulk Buying. Retailers often get to take advantage of exciting discounts when buying in bulk.
Why Choose Toolsale.eu
As a supplier, we help retailers to save time and increase their overall profit margin by searching better wholesale offers for power tools and electronic brands. Choosing us means that you’re choosing a company who want to assist you in the procurement process to lower your purchase costs.
With Toolsale.eu, you can enjoy access to excellent deals and discounts, promotions from Europe you’d never find elsewhere, and you can improve your company liquidity with our more extended payment deadlines. Our trade credit options include 15, 30, 60, 90 or 120 days. To find out more, please contact us.