Understanding Trade Credit in Distributive Trade
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Questions and Answers

Industrial Reconstruction Bank of India (IRBI) provides financial assistance in the form of term lending facilities, subscribing to shares and debentures, underwriting the issue of securities, lending money, and guaranteeing term loans raised by companies. This is an example of _____________ financing.

supplier

Trade credit financing is a major source of _____________ financing for businesses.

short term

Manufacturers, wholesalers, and suppliers of goods or materials are known as _____________ creditors.

trade

Trade creditors sell tangible goods to other business concerns on the basis of _____________ payment.

<p>deferred</p> Signup and view all the answers

Future payment credit is extended by business concerns with an intention to increase their _____________.

<p>sales</p> Signup and view all the answers

Trade credit is extended because of custom that has been built up over _____________.

<p>time</p> Signup and view all the answers

Trade credit is a form of _____________ loan.

<p>cash</p> Signup and view all the answers

Ownership securities include _____________ and debentures.

<p>shares</p> Signup and view all the answers

Businesses extend credit to increase _____________.

<p>sales</p> Signup and view all the answers

Credit is considered the soul of _____________.

<p>business</p> Signup and view all the answers

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