Suppliers can't do that or else they lose the contract to supply. You should work in business especially finance side to see no such thing as suppliers' demande

Suppliers can't do that or else they lose the contract to supply. You should work in business especially finance side to see no such thing as suppliers' demanded collateral. At best they "bribe" the finance controller/purchasing manager to get a better preferential treatments for them (e.g. clear their invoice faster, or better payment terms from 120 days to 30 days). Collateral may exists if suppliers are limited, e.g. during the chip shortage. Even then, they don't ask for collateral but downpayment deposit or partial payment upfront. It is simply not due to their willingness to turn into industry practice. They are pretty much being pointed a gun to their head to do so. If not, lose the contract and likely business face bankruptcy (akin to death from being shot to the head).