Some suppliers hesitate to offer trade credit to firms with a poor credit history. In these cases, the supplier may insist that the customer sign a(n)

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When a supplier is hesitant to offer trade credit to a firm with a poor credit history, they may require the customer to sign a promissory note. This is a legal document that outlines the terms of the loan or credit, including the amount owed, the interest rate, and the repayment schedule. It serves as a written commitment by the customer to repay the debt, which can give the supplier some assurance that they will be paid on time.

Some Suppliers Hesitate to Offer Trade Credit to Firms with a Poor