What is a Trade Credit?
Trade credit refers to external liabilities that occur between mainland Chinese residents and non-residents abroad (including Hong Kong, Macao, and Taiwan regions) and are directly provided by credit between sellers and buyers of goods and services transactions. Debt that arises at a time different from the time at which ownership of the goods is transferred.
Trade credit
Right!
- Chinese name
- Trade credit
- Foreign name
- trade credit
- Provide
- Bill financing and import and export credit
- Synchronize
- Commodity flow and capital flow
- supplier
- Overseas exporter
- Trade credit refers to external liabilities that occur between mainland Chinese residents and non-residents abroad (including Hong Kong, Macao, and Taiwan regions) and are directly provided by credit between sellers and buyers of goods and services transactions. Debt that arises at a time different from the time at which ownership of the goods is transferred.
- This includes suppliers (such as overseas exporters) providing direct credit for goods transactions and services, and purchasers (such as overseas importers) paying in advance for goods and services and work in progress (or ready to undertake). It differs from the bill financing and import / export credits provided by banks (included in loans for other investments), but is represented by credits provided directly between importers and exporters, including advance receipts, advance payments, deferred payments, and deferred receipts. Wait for four forms. Due to the small scale of trade in services and the general flow of goods and funds in trade in services, the trade credits in China's national revenue and expenditure statistics generally refer to the credit for trade in goods.