Posted: April 6th, 2013

What is trade credit?

1. What is trade credit?
2. Why is trade credit important to a business?
3. Why is trade credit important to customers?

Use examples which articles provide, examples of specific businesses and how it helps them.

Below are 5 links that will help get started but you may need to find extra articles.

1. The importance of trade credit for corporate financing in Germany – evidence from financial statements statistics:
http://www.bundesbank.de/Redaktion/EN/Downloads/Publications/Monthly_Report_Articles/2012/2012_10_trade.pdf?__blob=publicationFile

2. Trade Credit and its role in finance:
http://www.vicentecunat.com/TC%20Chapter_OUP.pdf

3. Trade Credit: What It Is and Why You Should Pay Attention:
http://smallbiztrends.com/2009/05/trade-credit-what-it-is-and-why-you-should-pay-attention.html

4. Why Trade Credit Is Important To Your Business Financial Future?
http://www.cfagbata.com/trade-credit/

5. Why Is Trade Credit So Important To Business Credit?
http://www.articledashboard.com/Article/Why-is-Trade-Credit-So-Important-to-Business-Credit/991634

You do not need to use these links but need to answer the questions thoroughly. 5 pages answering the questions.