The term "opportunity cost" comes up often in finance and economics when trying to choose one investment, either financial or capital, over another.It serves as a measure of an economic choice as compared to the next best one. For example, there is an opportunity cost of choosing to finance a company with debt over issuing stock. There are costs of administering the payment to the creditor on time attached to this type of credit. DISADVANTAGES OF TRADE CREDIT. Disadvantages of utilizing trade credit include loss of goodwill, higher prices of raw materials, the opportunity cost of discount, administration cost, and under worst circumstances one may lose the supplier as well. Opportunity cost should be used to help you identify what really matters to you, and cause you to pause before mindlessly spending on something that won't truly enrich your life in some way. What if, instead of spending $150 a month on cable, you paid for Netflix and Hulu. Now, instead of a monthly bill of $150 for TV entertainment, you spend