You run a small internet business and need to purchase computer hardware for an upgrade and expansion
Question:
You run a small internet business and need to purchase computer hardware for an upgrade and expansion you know that your next venture is highly risky will involve highly expensive staff and runs the risk if unsuccessful of limiting your cash flow. although the terms of the contract is 45 days payment you don’t expect to be able to pay the vendor bill for at least six months for until the expansion is complete and the new project is complete and hopefully making money. The vendor has done his due diligence and runs the usual credit checks. However none of the checks would reveal your secret and risky expansion plan you decide to.
1. Inform the vendors of your plans there are other suppliers after all
2. Keep quiet
3. Postpone the expansion until you can afford it out of current cash flow.