Economics B A-Level
Trade credit
What Trade credit means in Economics B A-Level, as defined for Pearson Edexcel.
Definition of Trade credit
Check what you remember
Read the wording for your board, then hide it and explain Trade credit in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: Pearson Edexcel
An arrangement where a business receives goods or services from a supplier but pays for them at a later date, helping to maintain liquidity without immediate cash outflows.
Topics that use Trade credit
- Types and sources of credit and the impact of credit within the economy (Pearson Edexcel A-Level)
Related terms
- Aggregate demand
- Business investment
- Financial institutions
- Leasing
- Loan
- Overdraft
- Share capital
- Venture capital
Using Trade credit in the exam
Check the command word and mark scheme for your exact question. After comparing your explanation with the reference, use the term in an answer on the linked topic. This practice does not predict an exam mark.
Practise Economics B questions
Create a free account to answer exam-style questions on this topic and get feedback on your answers.
Start free
All Economics B A-Level termsA week of Premium from your first lesson · Then the free plan continues · No card, no charge