Other sources of capital - SS1 Commerce Lesson Note

·         Trade Credit: Trade credit is a form of short-term financing provided by suppliers to their customers. It allows businesses to purchase goods or services on credit, meaning they receive the products immediately but can delay the payment to a later date. Trade credit provides a convenient way for businesses to manage their cash flow by obtaining necessary supplies without immediate payment.

·         Credits: In the context of capital sources, "credits" can refer to various forms of borrowing or financing arrangements. This can include bank loans, lines of credit, or credit facilities provided by financial institutions. Businesses can use credits to access funds for various purposes, such as working capital needs, investments, or expansion plans.

Equipment Leasing: Equipment leasing involves obtaining the use of machinery, vehicles, or other equipment from a leasing company rather than purchasing them outright. The leasing company retains ownership of the equipment while the business pays regular lease payments. This allows businesses to access and utilize necessary equipment without incurring the full upfront cost of purchasing it, conserving their capital for other purposes.