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Trade credit is a process in business where a customer can purchase goods from a company without an immediate payment. This is an agreement that is suitable for business owners that are starting up and needs a little help.

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โˆ™ 2014-09-17 19:06:00
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Q: What is Trade Credit?
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Related questions

What instrument are used in trade credit?

instruments in trade credit

The advantages and disadvantages of trade credit?

The main advantage of trade credit is you have more time to pay the creditor with no interest!

How much can you get when you trade in a PS2?

$20-$25 in trade in credit

What is trade credit and its different types?

Trade credit is a value put on items you trade to an individual or business. These trade credits can be used like cash money to purchase items from these same people.

Is trade debtors a debit or credit transaction on the trial balance?


How do you get Trade credit?

what do you mean by liabilities

Is the game-stop trade credit the same thing as store credit?


When adding an old trade line to your credit report will this help raise your credit score?

ANSWER: If the old trade line was in good standing, yes.

What does it mean when you apply for credit and they do not approve it and what does derogatory credit on recently opened trade lines mean?

You are not being approved for credit is due to your possibly having other new credit (less than 12 mos. old) reporting delinquent (this is what is being referred to as "derogatory credit on recently opened trade lines); each "trade line" is a creditor that you owe money to be it credit card or installment loan.

Where can you trade in consoles?

Gamestop is a place where you can trade in games and consoles for store credit

Do you get extra credit for gamestop if you trade in your PSP for a PSP go?

If you trade in 3 games with a PSP 2000 or 3000 you get $100 credit for a PSP Go.

Can you trade Red Dead Redemption for Toy Story 3 game?

NO. Unless you mean trade with a friend and then you should ask them. You can never trade a used common game for a new full price game. You can always get some credit from a store that takes games in trade for a game that is recent and popular. That is not a trade it is a small credit toward the purchase or a game or a trade in credit and your free to select what you want to purchase.

What is generally the largest source of short-term credit small firm?

Trade Credit

Where do you go to trade your ps3 for a used one?

You can trade in a PS3 as some retail stores like Gamestop. You can purchase a Refurbished PS3 from them, but they will not give you just a used one and will not trade. You must get a credit then purchase the item using money and your trade in credit

What is covered by a trade credit insurance policy?

Trade Credit Insurance is a type of insurance which is offered to businesses. The insurance policy covers accounts receivable, guards against bankruptcy, and protects the business against credit risks.

Can you trade your dsi for a 3DS?

Yes, at select locations you can get $150 trade-in credit for a working DSi.

Using the allowance method what does the journal entries do?

The journal entry to record the adjustment to the AFDA is as follows: Debit Bad Debt Expense Credit AFDA To record a write-off: Debit AFDA Credit Trade A/R To record a recovery of a previously written-off transaction: Debit Trade A/R Credit AFDA Debit Cash Credit Trade A/R

Why is trade credit generally the largest source of short term credit for small firms?

Well, trade credit would be credit extended by suppliers (I guess). So, if in fact it is the largest source of short term credit, it would be because it is easier to get credit from people that want to sell you something than from someone that lends money (the potential profit warrants the risk).

What trade-off do you make when you use credit?

I have no idea

How much will you get if you trade in FIFA 11?

Depends where you trade it into. I gave mine to blockbuster for £9.50 of blockbuster credit.

Are tradeline illegal?

Reportedly, buying trade lines is illegal. A trade line is something that will make a credit report look better. According to the Fair Credit Reporting Act, this is illegal.

The features of trade credit as a short-term source of Working Capital Finance?

Trade credit is the credit line given by a seller to a customer, which allows delay in payment for goods or services. Its features in terms of Working Capital Finance are availability and flexibility.

Do you get tax credit on a trade for a used car?

is there a tax credit when trading in your used car when purchasing a new one

What are the disadvanteges of trade credit?

TRADE CREDIT: Open, short-term (usually 30 to 90 days) deferred payment terms offered by a seller to a buyer as a standard trade practice or to encourage sales. In some trades such as jewelry business, the credit may extend to 180 days or even longer.DISADVANTAGES· If repayments are not made by certain deadlines, the business will receive a poor credit history which will be a big blow to any business as they will not trusted in the future if they require any loans, trade credit, credit cards or leasing.· Only companies with a good credit history will get trade credit and these can often be hard to build up, especially for new businesses.

Can you trade your vehicle in if you have a loan for it through a credit union?