Question: what are the benefits and drawbacks of providing trade credit?
Answer: Advantage – Minimal Cash Outlay. Trade credit financing provides a way for you to keep the shelves of your business stocked or build a product without a huge outlay of cash up front. ... 
Advantage – Discount for Fast Payments. ... 
Disadvantage – Fees and Penalties. ... 
Disadvantage – Loss of Trade Credit Privileges.