Trade credit is the largest use of capital for a majority of business to business (B2B) sellers in the United States and is a critical source of capital for a majority of all businesses. For example, Wal-Mart, the largest retailer in the world, has used trade credit as a larger source of capital than bank borrowings; trade credit for Wal-Mart is 8 times the amount of capital invested by shareholders.

For many borrowers in the developing world, trade credit serves as a valuable source of alternative data for personal and small business loans.^{[citation needed]}

There are many forms of trade credit in common use. Various industries use various specialized forms. They all have, in common, the collaboration of businesses to make efficient use of capital to accomplish various business objectives.

The operator of an ice cream stand may sign a franchising agreement, under which the distributor agrees to provide ice cream stock under the terms "Net 60" with a ten percent discount on payment within 30 days, and a 20% discount on payment within 10 days. This means that the operator has 60 days to pay the invoice in full. If sales are good within the first week, the operator may be able to send a check for all or part of the invoice, and make an extra 20% on the ice cream sold. However, if sales are slow, leading to a month of low cash flow, then the operator may decide to pay within 30 days, obtaining a 10% discount, or use the money another 30 days and pay the full invoice amount within 60 days.

John Cornell (born 2 February 1941) is a film producer, actor and businessman.

Born in Kalgoorlie, Western Australia Cornell once managed Paul Hogan and often appeared alongside Hogan in his popular television show The Paul Hogan Show as Strop, a dim-witted dinkum Aussie surf lifesaver. He produced and co-wrote the screenplay for Hogan's 1986 film, Crocodile Dundee that became the highest grossing Australian film ever. He also produced and directed the successful 1988 sequel, Crocodile Dundee II.

Cornell was also involved in the initial stages of World Series Cricket. He was, in fact, one of the prime-movers in the setting up of WSC, working closely with Kerry Packer and Austin Robertson.

Cornell is married to Australian television personality Delvene Delaney with two children, Allira and Liana. Allira was reported to have assisted Cornells tax evasion by shifting money from offshore bank accounts into Australia and helping to hide financial assets. He also has another daughter, Melissa, from a previous marriage. Until its sale for a record price of $65 million in 2007, Cornell owned the Beach Hotel, the most recognised pub in Byron Bay. He had built it for $9 million in 1990.