ch. 16.2 Flashcards
Proprietary Credit Card
it can only be used in the stores of the company that issued it
Credit Policy
Written set of guidelines used by an organization to determine how many and which customers will be approved for credit
three Cs of credit
Character- current debt, payment history , credit score
Capacity- regular income and term of employment
Capital- all assets and liabilities
Credit report
a credit history and financial behavior for a business or individual.
Credit bureau
private firm that maintains consumer credit data and provides credit information to businesses for a fee
Credit Score
a numerical measure of a loan applicant creditworthiness at a particular point in time
Credit risk
potential of credit not being repaid
Account receivable
list of individuals or businesses that owe money to a company
Account receivable aging report
when accounts receivables are due as well as the length of time accounts have been outstanding
collection agency
Company that collects post due bills for a fee
five Cs of banking
cash flow, capacity, capital, collateral, and conditions
