Trade Credit

This is the credit extended from one trader to another for the purchase of goods or services.

Trade credit typically defers the date when payment is due from the time of delivery to an agreed date in the future (typically 30 days, but terms vary between suppliers).  Granting, checking and chasing any unpaid trade credit is the function of credit control.

Trade credit is a term normally used in financial management. Explore our learning zone to discover more