A companys open account arrangements with its vendors.
Credit advanced to a business owner by suppliers and other vendors. They provide services or inventory in advance, and then wait for the business owner to pay them in 30, 60 or 90 days after delivery. Businesses use trade credit to maintain cash flow as they collect on invoices from clients and customers, and then pay their own bills. [go back to glossary list
Credit a supplier gives to customers by allowing them a certain period in which to pay. An important aspect in managing your company's cash flow.
Credit granted by a firm to another firm for the purchase of goods or services.
1. Arises from a sale of goods by a manufacturer or by a distributor to another manufacturer or retailer; 2. The measure of the ability of a business to secure goods to be used commercially in exchange for a promise to pay at some specific future time.
Credit granted to customers by wholesalers or retailers.
An amount that is loaned to an exporter to be repaid when the exports are paid for by the foreign importer. Credit extended by an exporter to an importer, permitting them to pay at some time after they take delivery.
A company's open account arrangements with its vendors.
when suppliers allow you to buy on account.
Credit extended by the company selling the goods to another company to enable it to buy goods/services from the party that is extending the credit.
credit granted to a company's customers through the extension of credit terms
Trade Credit is a business has received Trade Credit when it buys goods from a vendor who does not expect immediate payment.
Credit one firm grants to another firm for the purchase of goods or services.
The use of bankers' credits to secure the obligations of one or more parties to a trade deal. Instruments such as letters of credit, bonds and bank guarantees can be used to secure payment of extended credit, required particularly in overseas trade.
Credit granted by suppliers.
Trade credit exists when one firm provides goods or services to a customer with an agreement to bill them later, or receive a shipment or service from a supplier under an agreement to pay them later. It can be viewed as an essential element of capitalization in an operating business because it can reduce the required capital investment to operate the business if it is managed properly. Trade credit is the largest use of capital for a majority of business to business (B2B) sellers in the United States and is a critical source of capital for a majority of all businesses.