Trumen House, a confectionary manufacturing company, orders its raw materials in bulk from Nesinbon. Nesinbon allows Trumen House to make the payment at a later date, as opposed to immediate payment. Which of the following short-term financing options is being offered by Nesinbon?
A) Short-term bank loans
B) Commercial paper
C) Factoring
D) Trade credit

Question

Quizplus · Accepted Answer

Trade credit is a short-term financing option where suppliers allow buyers to purchase goods or services and pay for them at a later date.

Trumen House, a Confectionary Manufacturing Company, Orders Its Raw Materials