Current Account ‐ Squeeze on Trade Credit

Abstract

The cheapest of all forms of working capital is that which is obtained from trade suppliers in the form of monthly account credit facilities. Although it is commonly referred to as one month's credit, in practice it usually represents about six weeks. With the customary practice of settling accounts towards the end of the month following that in which delivery of the goods or provision of the services was made, then depending on the time of the month when the event occurred the actual period of credit can vary from one to two months.

Citation

Goch, D. (1976), "Current Account ‐ Squeeze on Trade Credit", Managerial Finance, Vol. 2 No. 2, pp. 74-76. https://doi.org/10.1108/eb013374