Question:
What is Trade Credit and give Advantages and Disadvantages for it
Author: eric_galvaoAnswer:
-Given by a Supplier of the Business, meaning that they can have the Goods now, and Pay Later A: The Business can then use the Goods in the Manufacturing Process and possibly Sell the Goods before it needs to Pay Back, Improving the Cash Flow A: Very easy to Maintain D: If Bills aren't paid on Time then Trust will Crumble and Reputation will Drop D: Risk for New Businesses as they may just Fail and Shut Down before the Supplier gets Paid, so the Supplier gets Nothing
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