Editing Trade credit (section)

==Alternatives==
One alternative to straightforward trade credit is when a supplier offers to give product on [[consignment]] to a trader e.g. a gift shop. The terms of the arrangement mean that the original supplier retains ownership of the goods until the shop sells them.
Trade credit has been identified as a critical source of short-term financing for listed manufacturing companies. A trade credit contract is a legally binding agreement between two parties that allows a buyer to purchase goods or services on account and pay the supplier at a later date<ref>{{Cite journal|last1=Weerawickrama|first1=V.L.|last2=Perera|first2=H.A.P.L.|date=2018|title=The Impact of Trade Credit Usage on Firm's Profitability of Listed Manufacturing Companies in Sri Lanka|url=http://repository.kln.ac.lk/handle/123456789/19657|journal=International Conference for Accounting Researchers and Educators|language=en}}</ref>