Trade Credit and Financing Instruments

Introduction

The life of a business is inextricably tied to the origination of trade credit, a relationship that has withstood the test of time, since trade credit is now extensively used in both international and domestic transactions in developed and developing countries. Therefore, the financing of trade credit is still a requirement for enterprises and an important area for developing markets such as those who could wither and bounce back strongly from the 2008 global financial crisis. In light of the slim chances of trade credit becoming an outdated topic, the evolution of the environment in which trade credit can be utilized has been accompanied by the identification of trade credit’s new roles due to its flexible nature. The evolution ...