Trade credit

Credit granted by a firm to another firm for the purchase of goods or services. The New York Times Financial Glossary

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trade credit trade credit credit1

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trade credit UK US noun [U] ACCOUNTING
an arrangement in which a business allows other companies to pay for goods or services several weeks or months after receiving them: »

They filed for bankruptcy on May 18, citing losses, weak sales, and constricted trade credit.


Financial and business terms. 2012.

Look at other dictionaries:

  • Trade credit — exists when one firm provides goods or services to a customer with an agreement to bill them later, or receive a shipment or service from a supplier under an agreement to pay them later. It can be viewed as an essential element of capitalization… …   Wikipedia

  • trade credit — The use of bankers credits to secure the obligations of one or more parties to a trade deal. Instruments such as letters of credit, bonds and bank guarantees can be used to secure payment of extended credit, required particularly in overseas… …   Law dictionary

  • trade credit — an arrangement to buy goods or services on account, that is, without making immediate cash payment. Glossary of Business Terms Credit granted by a supplier to a customer to finance the customer s purchase of goods or services from the supplier.… …   Financial and business terms

  • Trade Credit — An agreement where a customer can purchase goods on account (without paying cash), paying the supplier at a later date. Usually when the goods are delivered, a trade credit is given for a specific amount of days 30, 60 or 90. Jewelry businesses… …   Investment dictionary

  • trade credit — Credit given by one company to another; it usually results when a supplier of goods or services allows the customer a period (e. g. 14 days, 90 days) before expecting an invoice to be settled …   Big dictionary of business and management

  • trade credit — See *credit …   Auditor's dictionary

  • trade credit — / treɪd ˌkredɪt/ noun a credit offered by one company when trading with another …   Dictionary of banking and finance

  • trade credit — Fin credit offered by one business when trading with another. Typically this is for one month from the date of the invoice, but it could be for a shorter or longer period …   The ultimate business dictionary

  • trade credit — financial business from one business agent to a second; agreement to allow a deferral of payment from a customer …   English contemporary dictionary

  • Trade Credit Insurance — or Credit Insurance is an insurance policy and a risk management product offered by private insurance companies and governmental Export Credit Agencies to business entities wishing to protect their balance sheet asset, accounts receivable, from… …   Wikipedia

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