What do suppliers typically want in terms of payment and stability of business?

• A. Shorter delivery times
• B. Continued business and the business to pay its debts if goods are bought on credit
• C. Ignore terms
• D. High prices for goods

Answer: (B)

Suppliers want a steady stream of sales with reliable cash flow. When goods are sold on credit, they’re effectively lending money, so they prefer customers who will continue buying and who will pay what they owe when due. A stable business reduces the risk of late or defaulted payments and minimizes interruptions to supply, making it easier for the supplier to forecast cash flow and plan. The other options don’t address the core need: timely payment and ongoing, predictable business. Shorter delivery times are about service levels, ignoring terms increases risk for the supplier, and simply charging higher prices doesn’t secure payment or long-term stability.