supplier credit

Supplier credit is a flexible payment arrangement where a company purchases goods or services from a supplier and agrees to pay for them at a later date, often within 30 to 90 days. This arrangement helps businesses manage cash flow, giving them time to sell their products before settling the bill. It's like a short-term loan from the supplier, enabling smoother operations without immediate cash payment. Supplier credit is common in business transactions, fostering trust and ongoing relationships between buyers and suppliers.