What is trade credit?
One of the major differences between consumer and commercial
transactions is that most, if not all, consumer transactions are
paid in cash or by credit card at the time of sale. Because of this,
most consumer businesses never have to worry about extending credit
to a customer and can run their operations on an "all cash" basis.
This allows them to focus on their core competencies because they
don't have to carry slow paying Accounts Receivables and go through
the expense of collecting on such accounts.
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