trade credit


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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.

trade credit

a deferred-payment arrangement whereby a supplier allows a customer a certain period of time (typically one to two months) after receiving the products in which to pay for them. See CREDITORS, CREDITORS RATIO, WORKING CAPITAL.

trade credit

a deferred payment arrangement whereby a supplier allows a customer a certain period of time (typically two to three months) after receiving the products before paying for them. See also CREDIT, CREDITORS, WORKING CAPITAL.
References in periodicals archive ?
Summary: New Delhi [India], Mar 13 (ANI): The Reserve Bank of India (RBI) on Tuesday announced discontinuation of the issuance of Letters of Undertaking (LOUs) and Letters of Comfort (LOCs) for trade credit for imports with immediate effect.
Global Banking News-February 2, 2018--Zurich North America names head for Trade Credit and Political Risk
As per SBP report, investments made by corporate sector in gross capital formation was higher than savings, which had to financed by obtaining loans from banking sector, debt securities, issuance of shares and equity, trade credit etc.
Trade credit insurance is experiencing an emergence of sustainable growth in the U.
Trade credit is an important constituent of corporate finance (Rajan & Zingales, 1995).
M2 EQUITYBITES-August 16, 2017-Markel Trade Credit team comes to Chicago
Christens appointment follows Markels recent trade credit expansion into Canada.
BANKING AND CREDIT NEWS-August 16, 2017-Markel Trade Credit team comes to Chicago
Casey Bell, Head of Trade Credit GCC at AIG says that the trade credit insurance sector is set to bolster UAE trade, especially in volatile times.
Summary: Casey Bell, Head of Trade Credit GCC at AIG says that the trade credit insurance sector is set to bolster UAE trade, especially in volatile times
With the Bank of England recently cutting its outlook for UK growth amid growing economic turbulence, trade credit insurance continues to provide cover and reduce the risk to small businesses if customers that owe them money do not pay their debts or pay them late.
2009), Ge and Qiu (2007), and Yano and Shiraishi (2012) sought to clarify what role trade credit plays in China's economy using econometric analysis based on firm-level microdata.