Date Added: Jan 2010
Did you know that the reason most businesses fail is that they don't have enough cash to keep going? That makes sense when you consider how a typical product-based business works. The business pays to manufacture or purchase a product and inventories it until customers buy the goods. Buying that inventory ties up the company's cash and increases its risks (e.g. damaged inventory, obsolescence when you upgrade). Wouldn't it be better if you could get paid before you manufactured or purchased your product wholesale? It isn't always possible, but in an ideal business this element is present.