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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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.Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson
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.Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005