________ describes the short-term financing available to firms that buy merchandise from their suppliers and are not required to pay for their purchase until some future date.

Question

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Trade credit is the short-term financing that a business can receive from its suppliers when buying merchandise on credit. The payment is usually deferred to some future date, allowing the purchasing business to sell the merchandise and generate revenue before paying for it. Trade credit is a common form of financing used by businesses to manage their cash flow and support their operations.

________ Describes the Short-Term Financing Available to Firms That Buy