Credit in business transaction is?

In business transactions, credit refers to a form of loan where a seller allows a buyer to purchase goods or services with an agreement to pay later. The buyer can use the goods or services immediately but pays the seller at a later date, usually with interest added to the original amount. Credit allows businesses to purchase goods or services without needing to pay for them immediately, helping to smooth out cash flow and potentially enabling businesses to purchase more expensive goods or services than they could afford to pay for upfront.