Bendy, that's not always true. I've heard the car business used a lot as an example. Dealerships need a lot of upfront cash to buy cars in order to
sell them.
It can also depend upon how cyclical the business is. For example, the last business I worked for. It's was a smaller catalog company that relied a lot on the holiday season. Inventory purchases needed to be made 30-60 days before the holiday business would start in order to make sure everything was in stock. Things like paper, printing, and postage costs for the catalogs had to be paid and the catalog might not start bringing in the money for several weeks/months in the future so short-term loans we're often a good option.
It can also depend upon how cyclical the business is. For example, the last business I worked for. It's was a smaller catalog company that relied a lot on the holiday season. Inventory purchases needed to be made 30-60 days before the holiday business would start in order to make sure everything was in stock. Things like paper, printing, and postage costs for the catalogs had to be paid and the catalog might not start bringing in the money for several weeks/months in the future so short-term loans we're often a good option.
the bees
