Obtaining Trade Credit
Trade credit is a short-term financing option widely used in business. Basically it means you are using credit from suppliers to fund part of your business. By doing so you will not usually be charged any interest on the credit obtained. It is important that creditors are paid on time and in full as set out in the credit agreements. If businesses do not adhere to the credit agreements terms and conditions then creditors are well within their rights to apply charges and interest penalties. Ultimately they can stop this credit service altogether.