Home
Browse
Create
Search
Log in
Sign up
Upgrade to remove ads
Only $2.99/month
PBMF Ch 16 Credit
STUDY
Flashcards
Learn
Write
Spell
Test
PLAY
Match
Gravity
Terms in this set (30)
credit
an agreement between two parties in which one party lends money or provides goods or services to another party with the understanding that payment will be made at a later date
creditor
The party extending credit; lender
debtor
The party receiving credit; borrower
consumer credit
credit granted to individual consumers by a retail business
business credit
credit granted to a business by a financial institution or another company
trade credit
business granting a line of credit to another business for a short period of time to purchase its goods and services
closed-end credit
a loan for a specific amount that must be repaid with interest by a specified date or according to a specified schedule
secured credit
credit loans that require collateral
collateral
property in exchange for default on loan
installment loan
loan for a specific amount of money that is repaid with interest in regular installments
principal
Amount of money borrowed
finance charge
Total amount paid by a borrower to a lender for the use of credit; varies among lenders
amortization table
schedule of payments that shows interest and principal for each payment so the loan can be repaid within a specific period of time
open-end credit
an agreement that allows the borrower to use a specific amount of credit over a period of time
unsecured credit
credit granted based on a signed credit agreement with no collateral; also known as line of credit or revolving line of credit
annual percentage rate (APR)
the annual cost of credit charged by a lender
proprietary credit card
credit that can only be used in the stores of the company that issued it
cost of credit
variable expense that influences pricing decisions
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
criteria used to evaluate the creditworthiness of consumer credit applicants; character, capacity and capital
credit report
a record of credit history and financial behavior for a business or individual
credit bureau
a 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's creditworthiness at a particular point in time; FICO
credit risk
the potential of credit not being repaid
accounts receivable
a list of the individuals or businesses that owe money to a company
accounts receivable aging report
shows when accounts receivables are due, as well as the length of time accounts have been outstanding
collection agency
a company that collects past-due bills for a fee
five Cs of banking
criteria lenders use to evaluate the creditworthiness of businesses; cash flow, capacity, capital, collateral, conditions
line of credit
an established amount of money available to a business whenever needed
net amount
total amount of purchase less returns
THIS SET IS OFTEN IN FOLDERS WITH...
PBMF Ch 11 Product, Price & Place
55 terms
Chapter 17 Financial Management
36 terms
Chapter 15: Money and Banking
37 terms
PBMF Chapter 10 Marketing
39 terms
YOU MIGHT ALSO LIKE...
Credit
52 terms
Standard 6
15 terms
Standard 6 Marketing Principles
25 terms
Vocabulary 2
38 terms
OTHER SETS BY THIS CREATOR
Ch 18 Income & Taxes
26 terms
BIM Semester 2018 Review Terms
30 terms
Computer Concepts Ch 6 Network & Internet Security
18 terms
Computer Concepts Ch 5 Internet & Email
22 terms