Finding a Source of Funding for Your Used Book StoreThe partners of the used book store are looking for other logical sources of funding for their business. They currently receive funding from a wealthy relative. For independence, longevity and success, they feel they must seek other avenues of financing. There are different types of financing available to them, but they have to decide which source best suits their needs, whether to stay with the rich relative or some other source. Business credit (open book credit), credit cards, and SBA secured loans are all types of financing available to small businesses (Ebert & Griffin, 2005). They will have to compare other sources of financing with the benefits and risks of staying with the wealthy relative. Trade Credit Trade credit is credit extended to businesses by suppliers that allow them to buy now and pay later. The advantage of trade credit is the ability to take delivery of materials, equipment or other valuables without paying cash on the spot. The practice of trade credit can also help establish a good working environment between suppliers and the company. Most suppliers unfortunately will not offer trade credit to a new company with which they have not established a working relationship. They will require payment by cash or check upon delivery, or payment by credit card in advance until the company has determined that it can pay invoices on time (Entrepreneur, 2008, ¶ 2). Credit Cards Credit cards are a convenient and easy way to pay for the supplies, materials and equipment you need to start a business. There are several banks that offer business credit cards with different benefits such as rewards points, no annual fees, low introductory annual percentage rates, and cash back rewards on purchases (Bankrate, Inc, 2008). Credit cards may be too convenient for some business owners who don't manage their finances well. “Many business owners borrow large loans on their credit cards only to find themselves up to their ears in debt. Credit cards are one of the most expensive sources of cash and have opened the way to bankruptcy courts more than once” (Pinson, 2006, p. 143). What really makes credit cards attractive is that they are not difficult to acquire. The two main things that credit card companies consider when issuing credit are the personal credit score and the business owner's or owners' established credit (Wade, 2006). SBA guaranteed loans