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  4. Terms Beginning With C
  5. Credit Period

Credit Period

Definition of 'Credit Period'

The average length of time between the purchase of inputs and the payment for them. Equal to the average level of creditors divided by the purchases on credit per day.

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Related Terms

Credit RatingCash-Conversion CycleTrade CreditorCCCLetter of CreditWorking Capital CycleGuaranteed AnnuityRaw Materials Stock PeriodTurnoverInstalment CreditAccounting PeriodACPAnnuity CertainCancellation RulesGross Domestic ProductHire-PurchaseHolding Period ReturnsLowest Common MultipleMatching PrincipleMulti-Period Capital Rationing

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