Trade Credit - Definition & Meaning Explanation

You get ...

• Understanding commercial credit
  
• Definition of trade credit
• Trade credit explanation

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Some random terms…

• business people
  
• Work environment
• Earnings per share (EPS)

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commercial credit

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Commercial credit. When a buyer buys a product from a seller for sale and pays the manufacturer with money from the sale of the product, it is known as a trade credit.

In general, trade credit means that a manufacturer, wholesaler, or retailer buys products on credit. There is such a short-term business loan. This means that it is one of the sources of short-term business loans .

Note that when a customer buys a product to sell on credit, it will be a business loan. But if the consumer buys a product in the form of a consumer loan, then such a loan will not be considered a commercial loan.

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