Question

Trumen House, a confectionary manufacturing company, orders its raw materials in bulk from Nesinbon. Nesinbon allows Trumen House to make the payment at a later date, as opposed to immediate payment. Which of the following short-term financing options is being offered by Nesinbon?
A. Short-term bank loans
B. Commercial paper
C. Factoring
D. Trade credit

Answer 1

Answer:

(d) Trade credit

Explanation:

Trade credit is a basic instrument for financing development. Exchange credit is the credit stretched out to you by providers who let you purchase now and pay later.

Trade credit is tied in with winning new clients, expanding deals and holding client loyalty.

It's a simple method to ease income, which can help improve an independent company's productivity.