Vendor Financing

Try this unusual source of funding for your business.

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Looking for financing? Consider an unexpected source--your vendors. Vendors may be willing to give you the capital you need, either through a delayed financing agreement or a leasing program. Vendors have a vested interest in your success and believe in your stability, or they wouldn't be doing business with you. Before entering any agreement, however, compare long-term leasing costs with short-term loan costs; leasing could be more costly.

Excerpted from Start Your Own Business: The Only Start-Up Guide You'll Ever Need

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