Trade Credit is regarded as a spontaneous source of Short Term Finance”, discuss and comment.

Trade credit refers to the credit extended to a customer by its supplier of goods or services, whereby the customer is allowed to defer payment for a certain period of time. Trade credit is a common practice in business transactions, particularly among small and medium-sized enterprises. It is often regarded as a spontaneous source of short-term finance because it arises naturally from the buying and selling process, without the need for formal negotiations or agreements.

There are several reasons why trade credit is considered a spontaneous source of short-term finance. Firstly, trade credit is usually granted by the supplier as a routine part of its business operations. When a customer orders goods or services from a supplier, the supplier is likely to offer credit terms as a matter of course, without the need for any _____ _______ ______ _______ _________ ___ ___ ________ _____ __________ _______.
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