Trade credit is:

1. the process of checking actual performance against plans to ensure that desired financial results occur for a company
2. a company’s strategies for reaching some future financial position based on its credit rating and position in the industry
3. rules governing a company’s extension of credit to customers
4. the granting of credit by one company to another company that purchases products or services
5. the management of cash inflows and outflows to ensure adequate funds for purchases and the productive use of excess funds