Question: Logica utilises contractors to install its software to end users. To facilitate the provision of these goods, the company provides a standard trade finance facility

Logica utilises contractors to install its software to end users. To facilitate the provision of these goods, the company provides a standard trade finance facility to these contractors.

a) Explain how trade credit operates and how both Logica and the contractor would benefit from this type of facility. (4 marks)

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