Business, 04.07.2019 05:10 TerronRice

Is a form of short-term financing. businesses buy merchandise from their suppliers, but are not required to pay for their purchases until some future date.3

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Answer from: qdogisbeast7662

The right answer to fill in the missing parts of the problem is Trade credit.

Further explanation

Credit is the granting of the use of money or goods to another person at a certain time with a guarantee or not with collateral, by providing services of interest, or without interest.

In general, types of loans can be classified based on their use, purpose, period, and business sector.

Type of credit Based on its use

1. Investment Credit

It is a credit given by a bank for business expansion or development purposes.

2. Working Capital Loans

It is a credit given by a bank to increase the production operation capability of a company.

Types of Credit-Based on Purpose

1. Earning Credit

Used to increase business or production or investment

2. Consumer credit

It is a credit given by banks to the public for personal or institutional consumption.

3. Trade Credit

Credit given by banks to buy commodities or goods to be traded or resold. Debt payments are expected from the sale of the merchandise.

Type of Credit-Based on Term

1. Short-term Credit

Loans with maturities of less than one year or a repayment maturity of at most one year.

2. Medium-term Credit

Medium-term loans are loans issued by banks with repayment periods ranging from one year to three years.

3. Long-term Credit

Long-term credit is a loan that has a repayment period of more than 3 years or 5 years.

Business Sector Based Credit

1. Agricultural Credit

Loans disbursed to finance the agricultural sector or smallholder plantations.

2. Farm Credit

Credit issued to finance the livestock business sector with short-term or long-term credit

3. Industrial Credit

Loans disbursed by banks to finance small, medium or large industrial sectors.

4. etc.

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Credit

Details

Class: College

Subject: Bussines

Keyword: Type of credit.

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Answer from: Quest

by knowing conditionality

explanation:

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