Understanding The Differences Between Trade Credit And Cash Credit
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When running a business or looking for unsecured business lines of credit, it is important that you know the difference between cash credit and trade credit. At Corporate Cash Credit we offer both options, for two very different reasons. Whether you want trade credit or cash credit, or both the decision is yours, but Corporate Cash Credit can help you get there quicker.

What is Trade Credit?

Understanding trade credit is simple, especially if you grasp the fundamentals of owning and operating a business. As a business owner, you have probably already used trade credit at some point or another. Essentially, it is an unsecured business line of credit which allows you to make purchases from a specific vendor’s inventory. Based on your credit and Paydex scores, you are given a certain amount of credit to use for things like electronics, furniture, business supplies, and fuel and so on. However, trade credit is not the same as cash credit and that is important to note.

What is Cash Credit and How Is It Different from Trade Credit?

Cash credit is a whole other story. Either option may give you what you need to maintain and operate your business from day-to-day, but there are pros and cons to them both. Cash credit gives you the opportunity to make purchases anywhere, but searching for the best goods and services can be time-consuming and expensive. Trade credit, however, is generally taken out with one vendor at a time, specific to the dealings your business has with that vendor. In fact, some business owners feel as though trade credit is one of the best unsecured business loans a company can get if their Paydex score is high enough.

What Is the Trade Credit and Paydex Score Connection?

Just like with cash credit, trade credit lines requires the borrower to attain and maintain an optimal level of creditworthiness before they ever apply. The Paydex score of a business is often likened to the FICO score of an individual, although the two are not calculated in the same way. In order for a business to become approved for a line of trade credit, or any other sort of unsecured business lines of credit, that business must have an 80 Paydex score or better. This achievement is often difficult to make without strategic help, and that is where Corporate Cash Credit comes into play.

Corporate Cash Credit Helps Clients Get Substantial Trade Credit

Our company is poised to help clients achieve that 80 Paydex goal in as little as 45 days. We show our clients how to make the best charges and payments, and assist them in building a stronger and more functional business. Getting trade credit is much easier when your corporate credit is polished and you’re in contact with the most promising suppliers. Let Corporate Cash Credit show you the way to significant unsecured business lines of credit by visiting our official website now for more information.


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