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Credit

Definition of 'Credit'

The general meaning of credit is the lending of money to someone with the intention that it will get repaid at a future date.

Credit gives the ability to obtain goods or services now based on future income. Credit in the lending sense is based entirely on the promise that repayment will be made later – the person extending the monies is placing trust in the borrower that the promise will be honoured.

In accounting terms, ‘credit’ means a sum of money received. In banking terms, ‘in credit’ means that a customer has deposited monies with the bank, and does not owe money to the bank.

A sign in a bar or shop which says ’No credit’ means that cash is required for payment.

In credit industry terms, there are three main types of credit. Consumer credit, which relates to the lending of monies to consumers by credit card, overdraft or loan. Trade credit, which is the act of a manufacturer supplying goods to a retailer on the basis that payment will be made at the end of a fixed term, usually 30 days after invoice. Export credit relates to the funding of goods being exported abroad pending receipt of payment from the ultimate buyer.

Use the links below to locate the term you are looking for. If you can't locate it, please get in touch.

Credit Jargon Starting 'G'

Credit Jargon Starting 'I'

Credit Jargon Starting 'J'

Credit Jargon Starting 'L'

Credit Jargon Starting 'M'

Credit Jargon Starting 'S'

Credit Jargon Starting 'T'

Credit Jargon Starting 'V'

Credit Jargon Starting 'W'

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