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Why is trade credit generally the largest source of short term credit for small firms?

April 26, 2017credit firms largest short small source term Trade

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Why is trade credit generally the largest source of short term credit for small firms?

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Well, trade credit would be credit extended by suppliers (I guess). So, if in fact it is the largest source of short term credit, it would be because it is easier to get credit from people that want to sell you something than from someone that lends money (the potential profit warrants the risk).