FAQ

What is trade credit?

Trade credit is an arrangement between businesses that delays payment for delivered goods and services. Credit terms vary, but payment terms are typically due in 30 days to 45 days. 

Merchants often use trade credit to:

  • Win new customers
  • Enhance customer loyalty
  • Gain competitive advantage
  • Increase sales volume

However, trade credit often constrains cash flow because customers don’t pay upfront.

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