Trade credit

Question

Trade credit

08 Jan 2021

Answer :

Word Count : 432

Trade Credit refers to a form of short-term credit extended by one business to another as part of their normal business transactions. It is essentially a deferred payment arrangement in which the seller provides goods or services to the buyer on credit terms, allowing the buyer to make payment at a later date, typically within a specified period.

Key Features of Trade Credit:

1. Common in B2B Transactions: Trade credit is prevalent in business-to-business (B2B) transactions, where one business entity extends credit terms to another, often ____ _________ __________ __________ ___ ________ ____ ____ ___.
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