Solution Reads : "The most important source of short term finance is trade credit . This is effectively a “free” source of finance since its cost is built into the cost price of the goods, but this is unlikely to be discounted for immediate cash payment" Isn't the exact opposite true? Trade credit is NOT a free source of finance since it's cost is built into the price of the good, and suppliers usually give explicit discounts for NOT using trade credit and paying up immediatley?