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Posts: 175
A week 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.
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Fundamentals of Corporate Finance
Edition: 2nd
Authors:
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Posts: 209
A week ago
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Trade credit reduces a firm's collection float.
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wrote...
A week ago
Appreciate the effort, thank you!
wrote...
A week ago
You're very welcome ... please mark the topic solved when you get a chance
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