Janis Reardon is in the process of launching a craft shop.Her biggest supplier,Lothrop's Craft Supply,agrees to sell her the inventory she needs to stock her store on a delayed payment schedule.Janis is using what type of financing?
A)Line of credit
B)Floor planning
C)Trade credit
D)Asset-based borrowing

Question

Quizplus · Accepted Answer

Janis is using trade credit, which is a type of financing in which a supplier allows a buyer to purchase goods and pay for them at a later date, usually within 30 to 90 days. This is a common form of financing in the retail industry, and it allows Janis to stock her shop without having to pay for inventory upfront.

Janis Reardon Is in the Process of Launching a Craft