The computation of the cost of credit—the cost of not taking credit terms extended for a business transaction, is an essential part of doing business. The cost of not taking trade credit (also known as “credit cost”) usually increases during relatively good economic periods—more generous discounts being offered. In contrast, however, the cost of not taking trade credit usually declines as the discount terms are reduced in periods of economic downturn. But, those common situations are not really happened during [...]