Paying for stock upfront means carrying the cash cost through production, freight, storage and the wait for a customer. That deserves attention before it becomes a problem.
Find out what would make better terms possible
A new supplier may not offer credit immediately. Ask what would change that: trading history, order volume, financial information or a reliable payment record.
Agree what you’ll demonstrate and when you’ll revisit the conversation. Then follow through.
Negotiate the structure
The choice isn’t limited to full payment upfront or a long credit period. A smaller deposit, payment on shipment or terms for repeat products may be a workable next step.
Bill’s point is to make the discussion specific. What volume, history or timeframe would support a different arrangement?
Consider the whole cost
Better terms may come with a higher product price. Compare that cost with the cash released and the cost of financing it elsewhere.
A question to take away: What evidence would your supplier need to offer the next improvement in your terms?
