________ is a form of short-term financing. Businesses buy merchandise from their suppliers, but are not required to pay for their purchases until some future date.

Question

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Trade credit allows businesses to purchase goods from suppliers without immediately paying for them, and is a form of short-term financing. Secured credit involves the use of collateral, revolving credit provides a maximum credit limit for a set period of time, and factoring involves selling accounts receivable to a third party at a discount.

________ Is a Form of Short-Term Financing