Businesses without credit are hard to imagine. In today’s scenario, working capital and cash flow are some of the most significant aspects of business or trading (B2B).
The customers, especially, in B2B (Business 2 Business) want to purchase goods/ services on a credit basis without paying cash upfront.
Therefore, role of Trade Credit comes into picture and plays a vital role in B2B transactions.
This article intends to put forward what exactly is Trade Credit, and how important it is during B2B sales between two parties/ companies.