Trade credit is the single most important form of short-term business financing.

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Trade credit refers to the credit extended by suppliers to their customers for the purchase of goods and services. It is one of the most common and important sources of short-term financing for businesses, as it allows them to purchase the necessary inventory or supplies without having to pay for them upfront. Additionally, trade credit is often more flexible and easier to obtain than other forms of financing, such as bank loans or lines of credit.

Trade Credit Is the Single Most Important Form of Short-Term