Trade credit is granted to those customers who have reasonable amount of ______.

Question

KollegeApply · Accepted Answer

Trade credit is granted to those customers who have reasonable amount of financial standing and goodwill. Explanation: • Trade credit is extended to customers who have a good financial standing and reputation in the market. • Suppliers trust that these customers will pay on time. • It is not based on the customer’s current bank balance, weaknesses, or zero balance in their account.

AChoose Your Answer