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Author Question: Which of the following is NOT an advantage of trade credit versus a standard loan? (Read 63 times)

P68T

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Which of the following is NOT an advantage of trade credit versus a standard loan?
◦ Providing financing at below-market rates is an indirect way to lower prices for only certain customers.
◦ If the buyer defaults, the supplier may be able to seize the inventory as collateral.
◦ The supplier may have more information about the credit quality of the customer than a bank.
◦ Trade credit reduces a firm's collection float.


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Marked as best answer by P68T on Jul 9, 2019

carlsona147

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P68T

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carlsona147

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