Editing Trade credit (section)

== Type of trade credit financing ==

=== Open account credit ===
Open trade credit is the most common type, typically involving an invoice and a [[promissory note]] as primary documentation.

=== Installment credit ===
Repayment for trade credit is often done through equal installments, similar to standard loans or credit, with specific terms agreed upon.

=== Revolving credit lines ===
Traditional revolving credit allows borrowers to access credit multiple times until reaching a predetermined credit limit. Payments replenish available credit, allowing for repeated use over multiple time periods.

=== Consignment credit ===
[[Consignment credit]] involves one party (the consignee) selling goods provided by another party (the cosigner) at a lower cost. The consignee can profit from marking up the goods, while the cosigner benefits from the sale. Unsold goods can be returned within a specified timeframe.<ref>{{Cite web |last=Mayerle |first=Matt |date=2023-05-30 |title=Trade Credit |url=https://www.creditninja.com/finance/trade-credit/ |access-date=2023-07-11 |website=CreditNinja |language=en-US}}</ref>