Example of trade credit market
In the US, for example, trade credit is used by circa 60 percent of small with easier access to capital markets an incentive to offer trade credit to their customers. For example, if you have agreed trade credit terms of 45 days with your suppliers and trade credit terms of 30 days with your customers or clients, the net benefit Trade credit is financing to a company by its suppliers. Learn Here's the step- by-step explanation of the formula using the example given above: 2/10 net 30.