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Trade Credit |
Also found in: Wikipedia, Hutchinson | 0.02 sec. |
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Trade credit Credit one firm grants to another firm for the purchase of goods or services. That is, when the goods are delivered, the recipient does not have to pay immediately for the goods - a credit is given with terms for payment (say 30 days). This potentially allows the vendor to sell the goods and use the sale proceeds payoff the credit obligation. Trade Credit A loan or line of credit that a company extends to another in order for the second company to buy goods and services, especially those necessary to conduct its operations. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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