A Trade Credit is an agreement or understanding between one trader to another engaged in business with each other that allows the exchange of goods and services without any immediate exchange of money, buy now and pay later. It ist is a B2B agreement and an essential tool for financing growth. The Trade Credit is usually offered for the fixed period time, such as 7, 30 or 90 days and may extend credit beyond that with any cash discount and the type of credit instrument being used.

Related Definitions in the Project: The Property and Unit