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Title: Which of the following is NOT an advantage of trade credit versus a standard loan?
Post by: stevengu246 on Jul 7, 2019
Which of the following is NOT an advantage of trade credit versus a standard loan?

▸ Providing financing at below-market rates is an indirect way to lower prices for only certain customers.

▸ If the buyer defaults, the supplier may be able to seize the inventory as collateral.

▸ The supplier may have more information about the credit quality of the customer than a bank.

▸ Trade credit reduces a firm's collection float.


Title: Which of the following is NOT an advantage of trade credit versus a standard loan?
Post by: whoohoo8 on Jul 7, 2019
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Title: Which of the following is NOT an advantage of trade credit versus a standard loan?
Post by: stevengu246 on Jul 7, 2019
Appreciate the effort, thank you!