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3 Tutorials that teach Trade Credit and Promissory Notes
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Trade Credit and Promissory Notes

Trade Credit and Promissory Notes

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Author: Aisha Williams
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This lesson discusses some unsecured short term financing options for organizations.

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Tutorial

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Terms to Know
Prime Interest Rate

The interest rate banks charge to their best commercial customers.

Promissory Note

An agreement to pay a specific amount of money at a certain time or under certain circumstances.

Trade Credit

Credit which suppliers extend to their customers for a specific period of time, usually 30, 60 or 90 days.

Unsecured financing

A loan of funds based solely on an agreement between two parties that one will pay the other; no physical items are offered as collateral on the loan.