You have to consider how much you actually invested for the trade credit you hold on your account. If your merchandise costs you fifty cents on the dollar, $10,000 worth of trade credit actually cost you $5,000 in cash. By contrast, if you are a service related business, your trade credit may only cost you idle time. There’s zero cash cost. When making purchases using your trade earnings, always remember that you are essentially converting your surplus goods and services into something of real value. Thus it will often be less expensive to pay a little more with trade credit than to get the same article at somewhat lower price for cash. Seasoned traders are always aware of this difference and use it to their advantage. On the other hand, if someone overprices their products or services beyond a reasonable limit, do not do business with them. Instead, contact our office for another referral.