It is the period of credit repayment between companies. :

In the foreign trade industry, the adoption of account period is very obvious. Generally, the letter of credit is 45 days, which can save a lot of money, especially the transaction time is very fast, which reduces the communication cost; in the retail industry, due to arrears, If the payment is serious, the supplier will try its best to avoid the payment period, especially for small retailers, who generally require full payment to pick up the goods. However, for large retailers, suppliers generally give a certain amount of credit, which leads to the payment period and some supplies. In order to expand market share, companies will provide more favorable account terms than competitors, which may also lead to credit risks.

With the rapid development of chain retail companies in our country, many chain companies, from supermarkets to home appliance stores, have continued to expand and open stores. However, about 80% of the current store opening funds of domestic chain retail companies come from taking up payment from suppliers. Once a retail company has problems or goes bankrupt, the payment from suppliers will also be wasted.

Shorten the account period and standardize the market - Xinhuanet