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-Marcus Hanna ___
Costly Trade Credit
Refers to the high cost associated with the short-term financing obtained by buyers from suppliers when they choose to delay payment.
Gross Purchases
The total amount of all purchases made by a business before deducting any discounts, returns, or allowances.
Credit Terms
Credit terms are the payments conditions set by sellers for goods and services, including the period provided to the buyer to settle the owed amount.
Cash Conversion Cycle
A metric that shows the time span between a company's outlay of cash for raw materials and receiving payment from its customers, effectively measuring the time each net input dollar is tied up in the production and sales process.
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