Hello shoemaker, I would like to order 3000 pairs of shoes, can you do it by Diwali?
Oh yes definitely I can but I would need an advance.
He asked the leather supplier to supply leathernow and promises to pay him later . And the other inputs he bought from the credit he took in the form of an advance, Salim got to work
Salim's hard work finally paid off and he was able to earn a tremendous profit from this deal. This wouldn't be possible had he not taken the initial credit.
Good job with the shoes Salim, well done.
Thank you sir.
Swapna, a hardworking farmer, grows groundnut on her small, 3 acre farm which is not enough for her to be self sufficient.So every season she borrows money from a moneylender for raw materials and pays it back after selling her harvest.
But one year, pests infect her field and destroy half her crop due to which she is not able to pay back the moneylender
I promise I'll pay it back next year Mr. Moneylender
I need my money by the end of the week
Hence in the end she is forced to sell her land to repay the money. Taking credit does increases her troubles.