Trade credit is a type of short-term financing offered by suppliers or distributors that allows a business to purchase goods or services now and pay for them later. It's a common practice in the business world, and here's how it can help businesses:

• Better cash flow management: With trade credit, businesses can delay payment for goods or services, allowing them to manage their cash flow more effectively.
• Improved supplier relationships: By using trade credit, businesses can build trust with their suppliers and strengthen their business relationships.
• Increased purchasing power: With trade credit, businesses can make larger purchases than they would otherwise be able to, increasing their purchasing power and potentially growing their business.
• Access to financing: For small businesses that may have difficulty obtaining traditional financing, trade credit can be an alternative source of funding.