Doing the fed-ex missions for traders and town mayors is one way of getting cash to recruit some mercs, but I prefer traveling in the forbidden zone killing bandits for their loot. There is a dialog option with the bartenders that lets you change random quest sets. Use this option to get updated quest dialogs with the quest givers, like traders and mayors. It will save you a lot of time running around looking for things to do.
I think the bartenders sells some medkits early, and many of the traders as well.
The question to advance the game gives you the option to get to the next level. There are 16 levels, and a new one means traders sell more stuff and the enemies will be equipped with better weapons. I strongly recommend you say yes when asked, at least in the earlier parts sine you then can buy better stuff and get more money selling enemy loot.
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