Credit is extended to a company up to one year to purchase raw materials and cover a seasonal peak need for cash.What type of loan is this?

Name: Credit is extended to a company up to one year to purchase raw materials and cover a seasonal peak need for cash.What type of loan is this?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This is a working capital loan, which is designed to provide short-term funds for operational needs such as purchasing raw materials and covering seasonal cash flow fluctuations.

Credit Is Extended to a Company Up to One Year