lesson 2 Flashcards
Types of Credit
- Trade Credit
- Consumer Credit
- Bank Credit
- Revolving Credit
- Open Credit
- Installment Credit
- Service Credit
the first source for credit and borrowing that comes to one’s mind
Commercial Banks
are dedicated credit companies that work just for disbursing credit.
Financial Institutions
is a source of credit that comes along with the day-to-day operations of a business.
Trade Credit
are a very common source of credit.
Credit Cards
are a source of credit directly from the general public.
Public Deposits
is a money market instrument and a short-term credit source.
Commercial Paper
It is an acknowledgment that the company
has taken a loan from the holder at a fixed rate of interest…
Debentures
Companies can raise a credit against their outstanding invoice value that is due from customers.
Invoice Financing
is another form of credit available to new businesses.
Startup Finance
refers to credit in business dealings like selling goods on credit where the customer
promises to pay money later….
Trade Credit
refers to money, goods, or services provided on the agreement with the consumer
to pay later with the charges for using the credit.
Consumer Credit
is an extension of consumer credit.
Bank Credit
involves the continuous credit in which the lender gives the extension of credit to the
borrower so long as the account is regular and open by regular payments
Revolving Credit
has a feature of both installment credit and revolving credit.
Open Credit
is the extension of bank credit.
Installment Credit
the credit is given for services availed earlier.
Service Credit
Nine Sources of Credit
- Commercial Banks
- Financial Institutions
- Trade Credit
- Credit Cards
- Public Deposits
- Commercial Paper
- Debentures
- Invoice Financing
- Startup Finance
