Quoted from rolandthoms:...because he is building pinball machines
A majority of vendors/suppliers operate on terms like net 30. You do not need the money until 30 days after parts are delivered. In fact, there is a large amount that due net 60 days...some even 90 days. As the purchaser you are also in a position to negotiate/demand different terms based on the order size and the trust in your business to survive. Being a start up I guess you would not have a major influence unless you were soliciting orders from other "New" type (start-up) vendors/suppliers...they are out there.