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Supplier Credit

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Supplier credit
Self-financing of a supplier's operations. Also the agreement of a supplier of goods or services to deferred repayment terms.

Supplier Credit
An agreement between a supplier and a buyer whereby the supplier defers payment. That is, supplier credit occurs when the supplier accepts installment payments for the supplies he/she sells.


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This situation is very common for startups because few of them have any type of supplier credit.
China has already agreed to give Pakistan 121 million dollars supplier credit out of a total cost of 12 billion rupees for the construction of the Karakoram Highway to establish links with the Bhasha dam site to help transport heavy machinery needed for its construction.
The fact net debt remains close to £1bn and supplier credit at around £260m or more - on reduced cash generation - leaves few options in our view but to raise additional capital from investors or banks, even after a cut in the final dividend.
 
 
 
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