A large printing plant buys millions of dollars of paper every year from suppliers. How can those suppliers help the printer with short-term financing needs?

What will be an ideal response?

Larger businesses with good credit and an established relationship with their suppliers take advantage of another credit relationship to help bridge the temporary gap. Companies will often purchase inventory and supplies on trade credit. Trade credit is the ability to purchase inventory and supplies on credit without interest. Suppliers will typically request payment within 30, 60, or 90 days. Deferring payment with trade credit is a good strategy to bridge a temporary cash flow gap because it does not tie up cash unnecessarily.