For many businesses, trade credit is an essential tool for financing growth. Trade credit is the credit extended by Suppliers who allow their customers to buy now and pay later - typically the 20th of the following month.

Any time you take delivery of materials, equipment, services or other valuables without paying cash on the spot, you're using trade credit. Formalising this arrangement ensures both the Supplier and Customer are aware of the terms of the trade and the terms and conditions that support this.