One reason why firms use trade credit is that it is a spontaneous source of finance.

Name: One reason why firms use trade credit is that it is a spontaneous source of finance.
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Question

One reason why firms use trade credit is that it is a spontaneous source of finance.​

Quizplus · Accepted Answer

Trade credit typically arises naturally as a result of the purchase of goods or services between firms, without the need for formal negotiations or agreements. This makes it a convenient and easily accessible source of finance for many businesses.

One Reason Why Firms Use Trade Credit Is That It