When running a business or
looking for unsecured business lines of credit, it is important that you know
the difference between cash credit and trade credit. At CorporateCashCredit.com we offer both
options, for two very different reasons. Whether you want trade credit or cash
credit, or both the decision is yours, but CorporateCashCredit.com can help you
get there quicker.
What is Trade Credit?
Understanding trade credit is
simple, especially if you grasp the fundamentals of owning and operating a
business. As a business owners, you have
probably already used trade credit at some point or another. Essentially, it is
an unsecured business line of credit which allows you to make purchases from a
specific vendor’s inventory. Based on
your credit and Paydex scores, you are given a certain amount of credit to use
for things like electronics, furniture, business supplies, fuel and so on. However, trade credit is not the same as cash
credit and that is important to note.
What is Cash Credit and How Is It Different from Trade Credit?
Cash credit is a whole other
story. Either option may give you
whatyou need to maintain and operate your business from day-to-day, but there
are pros and cons to them both. Cash
credit gives you the opportunity to make purchases anywhere, but searching for
the best goods and services can be time-consuming and expensive. Trade credit, however, is generally taken out with one vendor at a time,
specific to the dealings your business has with that vendor. In fact, some
business owners feel as though trade credit is one of the best unsecured
business loans a company can get if their Paydex score is high enough.
What Is the Trade Credit and Paydex Score Connection?
Just like with cash credit, trade
credit lines requires the borrower to attain and maintain an optimal level of
creditworthiness before they ever apply. The Paydex score of a business is
often likened to the FICO score of an individual, although the two are not
calculated in the same way. In order for
a business to become approved for a line of trade credit, or any other sort of unsecured business lines of credit,
that business must have an 80 Paydex score or better. This achievement is often difficult to make
without strategic help, and that is where CorporateCashCredit.com comes into
play.
CorporateCashCredit.com Helps Clients Get Substantial Trade Credit
Our company is poised to help
clients achieve that 80 Paydex goal in as little as 45 days. We show our clients how to make the best
charges and payments, and assist them in building a stronger and more
functional business. Getting trade
credit is much easier when your corporate credit is polished and you’re in
contact with the most promising suppliers.
Let CorporateCashCredit.com show you the way to significant unsecured
business lines of credit by visiting
our official website now for more information.
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