trade credit

trade credit definition - business

trade credit

The sale of goods or services when the seller provides short-term credit. Trade credit results in accounts receivable for the seller and accounts payable for the buyer. Trade credit is offered as an incentive to customers. See also terms 2.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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