Costly trade credit
Costly trade credit is credit that is taken in excess of free trade credit and whose cost is equal to the discount lost.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Costly trade credit. Credit taken (in excess of free trade credit) whose cost is equal to the discount lost.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
