Corporate Credit: A contractual agreement in which a corporation receives something of value now and agrees to repay the lender at some later date. This is almost identical to personal credit except it is a business entity, instead of an actual person, that receives corporate credit from vendors. Corporate credit is the largest business to business form of capital and is a very important source of capital for most businesses. Trade credit, for most businesses, is much greater than the funding provided by banks, alternative funding sources, and investors.
Net terms refer to how long your business has to pay the balance of the invoice. If a trade credit vendor extends you net 30 days terms, that means you have 30 days to pay the full balance. Sometime a corporate credit vendor will offer discounts if the balance is paid before the terms are up. A vendor might offer a 5% discount on the total invoice if the balance is paid within 20 days and perhaps a 10% discount if paid within 10 days. Basically, corporate credit allows the businesses to collaborate in order to efficiently use their capital for different business goals.
To find sources of corporate credit you can run a free search in our business funding directory which give you FREE access to over 4,000 sources of business capital from lenders across North America. This is the largest free funding directory of its kind in the United States of America. After you run a free business capital search you can also find information on how to build your business credit the right way, so you can improve your chances of getting approved for business financing.