Abstract: Trade credit is one of payment option which is provided by one trader to another party in their normal course of business process when the goods or services are bought on credit. It facilitate to the transaction without immediate payment. The main objective of this research is to investigate the impact of trade credit as a short term financing method among listed manufacturing companies and profitability of the companies to ensure whether theoretical concepts of trade credit utilizations are practicable in real business environment. Although this research goes to investigate the impact of trade credit utilization and performance of the companies, with the purpose of strength the model, researcher has included three control variables to the model of the study.