Q.7 What is trade credit? How does trade credit serve as a short-term financial instrument for business organisations?
व्यापारिक साख क्या है? व्यापारिक साख व्यापारिक संगठनों के लिए अल्पकालिक वित्तीय साधन के रूप में कैसे कार्य करती है?
Ans.
Trade credit is an arrangement where a supplier allows a buyer to purchase goods or services on credit, with payment due at a later date. It is a short-term financing option that helps businesses meet their short-term liquidity needs.
Trade credit is a crucial short-term financial instrument for business organizations. It works in the following ways:
- Immediate liquidity: It allows buyers to obtain goods or services without immediate payment, helping them maintain their short-term liquidity.
- Working capital management: It helps businesses manage their working capital more efficiently. They can delay payments and use the funds for other critical expenses during that period.
- Increased sales: It helps sellers increase their sales. By offering credit, they can attract more customers and encourage existing customers to buy more.
- Supplier relationships: It helps build strong relationships between buyers and sellers. It is based on trust and mutual respect.
| Source: NCERT : Chapter 8 : Page 183 |
| Extra Info: व्यापारिक साख के लाभ (Advantages of Trade Credit): कोषों का सुविधाजनक एवं सतत स्त्रोत (Convenient and continuous source of funds)तुरंत मिल जाती है (Quick availability)बिक्री को बढ़ाती है (Boosts sales)भंडार स्तर में वृद्धि (Increase in inventory levels)संपत्तियों पर कोई प्रभार नहीं (No charge on assets) व्यापारिक साख की सीमाएँ (Limitations of Trade Credit): जोखिम बढ़ता है (Increased risk)सीमित कोष ही जुटाए जा सकते हैं (Limited funds can be raised)खर्चीला स्त्रोत (Expensive source |