A charge buyer is an individual or entity that makes a purchase on credit, with the understanding that the amount owed will be billed and must be paid at a later date. This concept is closely related to credit buyers and credit orders.
A credit order is a transaction where goods or services are provided without immediate payment, rather, billing occurs at a subsequent time. This is a standard practice in many business transactions.
Dating in commercial transactions refers to the extension of credit beyond the supplier's customary payment terms, allowing buyers more time to pay for goods or services.
High credit refers to the maximum amount of credit that has been extended to a customer or a company within a specific time frame. This can apply both to banking loans and trade credit from suppliers in different financial contexts.
An open account is a type of credit agreement between a buyer and a seller where the seller provides goods or services to the buyer with the expectation of receiving payment at a later date. It is also referred to as an unpaid credit order or open credit.
Supplier credit is a financing method in which a supplier allows a buyer to purchase goods or services on credit, paying for them at a later date, potentially improving the buyer’s cash flow and operational efficiency.
Trade credit refers to open-account arrangements with suppliers of goods and services, involving a firm's record of payment with the suppliers. It constitutes a company's accounts payable and is an essential external source of working capital despite potentially high costs.
A trade reference is a critical component for assessing the creditworthiness of a trader, typically provided by another member within the same trade, often required by suppliers before extending credit terms.
