17 - vestor receives directly on his security. In considering other sources of equity capital, do not forget your customers, your competitors or those in related industries, pools of investment capital interested in special situations, family estates, companies with ample cash seeking a diversification, and finally, your suppliers. Twice in my business career on behalf of two different companies in widely differing industries, I have been engaged in arranging long-term financing for the companies' customers - - not just extended credit terms but long-term credits or equity purchases that were the key to the future success they have since attained. The supplier is willing to make capital available on a favorable basis because he expects to profit on his product sales as well as his investment. While it has its limitations, it can be the most satisfactory method of providing funds at a critical time in a company's life when other sources are simply not available. Financing the smaller company is a problem in merchandising. The product that you offer must be designed to meet a specific need and it should be presented effectively in the market in which it is in demand. The product must have quality consistent with its price and the warranties that it carries. Besides serving the customer well, the product must show a profit to the producer, who must be effectively organized to produce it, to sell it, an to guarantee its performance. The reputation of the manufacturer is always at stake and in this case it is your management. If companies with good operating management will apply the same talent and ingenuity to financing that they do to their other business functions,