Trade Credit
/ˈtreɪd ˈkrɛdɪt/
Definitions
- (n.) A commercial arrangement allowing a buyer to purchase goods or services on account, deferring payment to a later date.
The supplier extended trade credit to the retailer, allowing payment within 30 days.
Forms
- trade credit
- trade credits
Related terms
See also
Commentary
Trade credit is a key financing tool in commercial transactions and should be clearly documented to establish payment obligations and limit disputes.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.