Here’s what I did:
I paid the 20% upfront using my own money. The goods are imported into the U.S., and I have 60 days to pay the remaining balance to the brand.
Now, here’s the smart part…
I also have access to a short-term line of credit that gives me 90 days to repay. If I pull, say, $10,000 from this line of credit, it might cost me around $200–$300 in fees.
So instead of using my own capital, I use the line of credit at around day 60 to pay the remaining 80% to the brand. And since the line gives me 90 days to repay, I now effectively have 150 days total to generate returns before I need to fully pay back.
In other words:
I’m getting financed by the brand (60 days) + financed by the line of credit (90 days) = 150 days net to generate cash flow.
And the best part?
My profit margins are high, because I financed the purchase using both supplier terms and short-term credit. I minimized my upfront capital and maximized return on investment using my own $2k laverage supplier product and Line of credit.