A seller's credit provided for purchasing goods is known as what?

The correct answer is commercial credit. Commercial credit refers to the credit that is extended to businesses to facilitate the purchase of goods and services, enabling sellers to offer their customers the ability to buy now and pay later. This form of credit is essential in business-to-business transactions, as it allows companies to manage cash flow and invest in inventory without immediate upfront payment.

In the context of the given options, commercial credit effectively supports the operation of businesses by providing them with the necessary funds to acquire goods. It often involves trade credit arrangements, where suppliers allow businesses to purchase goods on credit, thus encouraging sales and enhancing business relationships.

Understanding this concept is critical for professionals in the payments industry, as it relates directly to how credit systems function within commerce and can affect cash flow, financial planning, and overall business strategies.