Trade Credit definition

Trade Credit shall have the same meaning as assigned to it under guidelines of the Reserve Bank of India as amended.
Trade Credit means any obligation incurred or assumed by the Company in the ordinary course of business in connection with the obtaining of materials or services, and all obligations of the Company in respect of any guarantees of such obligations of subsidiaries of the Company; provided that Trade Credit shall not include any obligations of the Company in respect of travelers checks or other unsubordinated financial instruments issued by the Company.

Examples of Trade Credit in a sentence

Trade credit insurance can bridge the traditional gap between the sales department and the credit department, two areas often at odds.

On an on-going basis, the trade credit insurance provider can monitor critical accounts, which incidentally avoids the cost of attempting to do that in-house.4. Competitive advantage: Trade credit insurance gives a firm the ability to quickly match its competitor’s credit limit and pay terms.

Trade credit insurance also provides a more stable and confident environment for sales and marketing to penetrate global markets.3. Financial stability: Receivables in the average company represent up to 40 or more of its balance sheet assets, and therefore, have a major impact on cash flow and how investors and banks view the company’s financial viability.

Valid points include (Any 2 × 1 marks): [2]• Trade credit allows the purchaser to pay for them later (1) after an agreed period of time (1) for goods after they have received them (1)• The credit period will allow the buyer to sell the goods (1) and so pay for them from the proceeds of the sale (1)• The credit period given may vary/for a short period of time (1) and depend on the credit-worthiness of the customer (1) but usually used for trusted/reliable buyers (1) Accept any other relevant points.

Trade credit is taken as the measure of trade credit during the year, divided by total assets.


More Definitions of Trade Credit

Trade Credit means a credit granted to the Customer by Zakład Produkcji Folii EFEKT PLUS Sp. z o.o. consisting in the deferral of the date of payment for the Products released to the Customer.
Trade Credit means any debt for goods or services; but
Trade Credit means any debt for payment of goods or services where the payment may be required by the vendor after a stipulated period after the supply of the goods or services, but does not include a short 10
Trade Credit means buying goods from suppliers now (e.g. sugar, fruit, packaging) but paying for them later (with the suppliersagreement).
Trade Credit means any of those amounts;
Trade Credit means ‘Invoice’, ‘Goods or ‘Servicessupplied by JFE to the Customer at the Customer’s request from time to time (where the context so permits the terms, ‘Invoice’, ‘Goods’, or ‘Services’, shall be interchangeable for each other).