Trade credit is

Question

Trade credit is

Quizplus · Accepted Answer

Trade credit refers to the credit extended by suppliers to buyers to facilitate their purchases. It is a form of supplier financing, where suppliers allow buyers to purchase goods and services on credit and pay for them at a later date. It is not a bank loan, international financing arrangement or venture capital financing. Trade credit refers to a supplier's extension of credit to a buyer, allowing the buyer to purchase goods or services and pay for them at a later date, often with interest. It is a type of supplier financing, not a bank loan or international financing arrangement, and it is distinct from venture capital financing, which involves investment in a start-up or growing business.

Trade Credit Is