There are several potential advantages to offering trade credit, writes Meredith Wood, director of community relations at Funding Gates. The payment flexibility could help your company boost sales, and it shows appreciation for your customers and helps you stand out from the competition. "[I]f a customer has to choose between a business who offers flexible payment terms and a business who doesn't, given the service and price is comparable, they will always choose the one extending credit," she writes.

Related Summaries