👉 The merchants' fluid, often referred to as the "merchant's mule," is a concept from the 17th-century Dutch Republic's financial system, representing a unique form of credit and liquidity mechanism. Essentially, it was a type of short-term loan or trade credit that merchants provided to their partners and suppliers. This fluid allowed merchants to extend credit without the immediate need to hold physical currency, facilitating trade and commerce across vast distances. The merchants' mule was typically secured by goods, meaning the borrower had to pledge their inventory or assets as collateral. This system enabled merchants to maintain robust cash flows, manage risks associated with long-distance trade, and support the burgeoning global economy of the Dutch Golden Age.
