Question

Anisha, an entrepreneur, starts a real estate firm with very limited funds. In order to conduct business, she purchases a few laptops, LED screens, and other office equipment from a local electronics wholesaler. The wholesaler understands her financial situation and allows her to pay for the goods in installments. In this scenario, the type of funding obtained by Anisha can be regarded as a _____.

Answer 1

Answer:Trade credit

Explanation:

In various businesses, trade credit is a method used to grow the business financially. Trade credit is the credit that you get when your payment is extended in a way that you buy now but pay later. Anisha is given a chance to take all the goods she needs for her business and pay for them later this means the business isn't losing because she won't walk away without taking anything and they are still going to get their money.

Whatever material or equipment that you take without paying instantly you are using trade credit.