Trade credit is often seen as a less desirable way for businesses to get funding, but new research challenges this idea. By looking at a huge amount of data on trade credit contracts, the study found that customers actually prefer using trade credit over other options. Contrary to common beliefs, improvements in a customer's financial situation don't necessarily mean they use less trade credit. Instead, it's more about reducing the amount they buy from the supplier. The size of the customer and how much they buy from the supplier also play a role in when payments are due. Overall, the findings suggest that trade credit is a popular choice for businesses and may need a new way of thinking about short-term finance.