Retail floor planning is a type of short term loans used by retailers to purchase expensive inventory such as automobiles.
Variable costs fluctuate directly with sales volume, such as purchasing inventory, shipping, and manufacturing a product.
The developer can take advantage of volume discounts when purchasing inventory and pass those savings on to buyers.
In papers attached to the petition, Mr. Kestenbaum stated that the immediate problems came from "an inability to obtain working capital to purchase inventory."
Their business entails purchasing unsold inventory of used books from UK charity shops and reselling them on various online sites such as Amazon.com.
In addition, many of the loans go directly to purchasing fixed assets like sewing machines and the wood for pig pens, or inventory for a food shop.
The franchisee is generally subject to meeting sales quotas and is required to purchase equipment, supplies and inventory exclusively from the franchiser.
Perlmutter had a close relationship with the management of toy manufacturer Coleco Entertainment Corporation as he had been purchasing unsold inventory from them for some time.
Although the company continued to manufacture firearms, it never financially recovered and went bankrupt in 1916 with Marlin-Rockwell purchasing its machinery, inventory and designs in 1917.
Small businesses borrow for four principal reasons: starting a business, purchasing inventory, expanding, and strengthening the firm's financials.