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Trade Credit
The arrangement between businesses to buy goods or services on account, paying the supplier at a later date.
Effective Annual Cost
Effective Annual Cost denotes the total cost of financing on a yearly basis, incorporating fees and interest rates to reflect the true annual cost of borrowing.
Sole Supplier
A single source from which a company purchases goods or services, often leading to increased negotiation power for the supplier but potential risks for the buyer.
Cash Conversion Cycle
A metric that measures the time span between a company's outlay of capital for supplies and receiving payment from the sale of those goods or services.
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