As a business man, would you like to deal products with more profit but no credit from supplier or less profit with maximum credit from supplier? why?

BOTH OPTIONS.............. NO FIXED RULES IN REAL BUSINESS WORLD , IT CHANGES WITH THE ACCOUNTS  REPORT.............. GOOD DAY

 A combination of both.

1.To have comfortable income to cover all operating expenses and contribute income.(Usually turnover of these products are comparatively at a low pace)

2.Second one improve leverage enabling credit facilities to valued customers. (Usually turnover for these products will be on a higher side) The cash generated from  the second category can be utilized for the purchase of first category, less time span on credit may be made available to our creditors. the profit + realization proceeds from creditors + cash accumulations on account of cash sales net of expenses can be utilized for making timely payment to second category suppliers) The second option will be purely on the basis of availability of working capital from banks, comparatively at a lower cost when compared to pricing for credit purchases)

To be more specific I prefer1st option--where you have chances of bargain and best price--and burdens on account of over-trading can be avoided.(we always have an upper hand to decide the trade terms)

Less profit with credit from suppliers. This is to ensure a healthy business relationship with the supplier. Secondly with the less profit products could easily be sold. So there is a fast movement of stocks, the investment doesn't sleep. good for business. But I must advice suppliers to provide the range of price for the products they carry. No control of price could destroy the network of business.

Depends on how liquid I am as a business man.

fox business men know how to play in a market with less cash in use. it most likely to have a maximum credit from suppliers is the best choice to them unless, they have liquidity not in use.

I think credit is the most important role played in every business, because a business is always rolling money nobody having the full money always that the case credit facility is invented.. if you give more days on credit people will always prefer you.. and you can do maximum business.

It depends on the financial status of the company for which I work. If the company is in a good status, I will choose for more discount with less credit.

If you want to judge which option could be more profitable for you then calculate the bank interest cost for the maximum period you will get credit from the supplier and compare it with maximum profit which you can earn if you pay suppliers immediately without any credit terms, and select the option which can give you bigger profit.

 

This is the difference between employee & employer ….

What we prefer depends on it …

Someone would like to be unique for his/her ,  Brand/Name/Fame - Second option like an  Employer .

Would like to someone become unique – First Option like an employee.