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Briefly explain the following source of finance: Trade Credit - Business Studies

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प्रश्न

Briefly explain the following source of finance:

Trade Credit

संक्षेप में उत्तर

उत्तर

Trade credit is credit granted by suppliers to clients for the purchase of goods and services. Short-term financing enables companies to purchase goods or services on credit with a set payback time. Trade credit provides interest-free financing, allowing the company to use the goods or services before making the payment. Many organisations rely on it for working capital, enabling effective cash flow management.

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