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stevengu246 stevengu246
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4 years ago
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.
Textbook 
Fundamentals of Corporate Finance

Fundamentals of Corporate Finance


Edition: 2nd
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whoohoo8whoohoo8
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stevengu246 Author
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4 years ago
Appreciate the effort, thank you!
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