vaihtokrediitti

Vaihtokrediitti, often translated as "exchange credit" or "trade credit," is a financial instrument used in business transactions. It represents a short-term loan or deferred payment arrangement between parties, typically a supplier and a buyer. Instead of immediate payment upon delivery of goods or services, the buyer is granted a specific period to settle the invoice. This allows the buyer to utilize the acquired goods or services, potentially generating revenue before the payment is due, thereby improving cash flow.

The terms of a vaihtokrediitti are usually agreed upon in advance and include the credit limit, the payment period, and any applicable interest rates or early payment discounts. For the supplier, offering vaihtokrediitti can be a way to attract and retain customers, as well as to facilitate larger or more frequent sales. However, it also introduces a risk of non-payment by the buyer. Therefore, suppliers often conduct credit assessments of potential buyers before extending such credit. In some cases, specialized financial institutions may provide factoring or invoice discounting services, which involve purchasing these trade receivables from suppliers, thus mitigating the risk and providing immediate cash. The concept is fundamental to the smooth functioning of many supply chains and business operations.