trade credit
Definition
Open-account, short-term (usually 30 to 90 days) deferred payment terms offered by a seller to a buyer as a standard trade practice or to encourage sales. In some trades such as jewelry business, the credit may extend to 180 days or even longer.
trade credit is in the Accounting & Auditing and Banking, Commerce & Finance subjects.
trade credit appears in the definitions of the following terms:
working capital,
financial structure,
business risk,
capital structure,
days accounts payable (Days A/P),
net 30,
business credit,
trade account,
debt financing,
creative financing
and
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