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Advantages

  • You can buy the stock and pay later when you have sold the stock and made enough money to pay them back
  • Eases the cash flow as you can pay after 28-30 days
Disadvantages
  • If you do not pay them back on time you can build up a bad credit history
  • Only companies with good credit history can be accepted the trade credit grant
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Q: What are the advantages and disadvantages of trade credit?
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