How can trade credit help businesses to manage theircash flow?

Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter6: Saving And Investing
Section: Chapter Questions
Problem 14AA
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How can trade credit help businesses to manage their
cash flow?

Expert Solution
Step 1

Trade credit allows the buyers to make payment on a later date for the goods purchased.

It is a great source of fiancé for short term purchase for businesses.

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