Definition
Trade credit is the credit extended by suppliers to customers for purchasing goods or services. Founders reach for it when a vague conversation needs a shared, specific meaning. Name it clearly, then let the next decision — a hire, a price, a test, or a pass — follow from that meaning.
In the room
How the word shows up in a real conversation.
A mentor asks, “What is your Trade credit?” The useful answer is concrete: credit extended by suppliers to customers for purchasing goods or services. A slide title is not an answer.
Common mistake
Using Trade credit as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.
See also
Trade agreement
International treaty that regulates trade between countries.
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Trade barrier
Government policy that restricts international trade.
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Trade deficit
Situation where a country imports more goods than it exports.
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Trade surplus
Situation where a country exports more goods than it imports.
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