Source or Type of Short term finance: Trade Credits From Accounts Payable
September 10th, 2008
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Append below features of Trade credits or Accounts Payable, the advantages and disadvantages of using trade credits:
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Features & Salient Points
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Advantages
Interest free unless if supplier offers discount and borrower did not pay to enjoy the discount benefit;
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Disadvantages
Therefore, the “cheapest” source of finance but should be handled properly otherwise company’s reputation might be ruined if it overstretch the credit term given by the suppliers. |
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Go to All Articles on Sources or Types Of Short Term Finances |
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