Evolution of Trade Credit in Romania – Trends and Challenges
One of the most used methods is the sale of products or services with payment at a later date, agreed by the customer (sale on credit). Trade credit or supplier credit is generally granted by a supplier of goods or services to a buyer, and their payment will be made at a later date, agreed upon. Trade credit is usually granted in the short term, with maturities between 30 and 90 days. For a company at the beginning of the road, trade credit is an important instrument, generating cash flow, which gives it the possibility to buy and sell products or services with a subsequent settlement, according to the understanding of the parties. Unlike bank credit or factoring, provider credit is not interest-bearing, under certain conditions. Starting from these fundamental elements, the article has as its subject the evolution of the commercial credit in Romania during the last five years, a period considered representative for establishing trends and determining factors.
Trade credit, trends, causes, solutions, Romania
Cite this paper
Gheorghe Catalin. (2020) Evolution of Trade Credit in Romania – Trends and Challenges. International Journal of Economics and Management Systems, 5, 14-20