In General ledger

The word credit is a technical term which indicates one of the two columns of the partly double Comptabilité: this column is used to record the origin of funds placed at the disposal of the company is coming from outside (ex: contributions in capital, loans, supplier credits,…) that is to say correspondent with a use of existing richnesses in the company (payments made by the customers, use of asset in bank or case, the actual sales,…). By convention, the column " crédit" is always that of right-hand side.

In banking accountancy

The extract of account provided by the banker functions " with the envers". For the bank, the depositor (us) is a money supplier. Each time the banker receives our money, it notes it at the same time with the credit account which it keeps with our name and the flow of the clients' account that it holds in his own accountancy. We become creditor bank, which is debtor towards us.

In finance

The credit includes the various activities of Prêt of money, that it is in the form of contracts of bank loans or terms of payment of a supplier to a customer.

The credit is generally carrying a interest which must pay the Débiteur (the recipient of the credit, also called borrower) with the Créancier (that which grants the credit, also called lender).

The agreement of credit

The word " crédit" with the same etymology as the word " croire" (in Latin, " credo" = I believe, I have confidence), it is thus an activity which rests on confidence, that which the lender grants to the borrower from which it awaits the refunding of the loan. In a general way, plus the lender confidence in the borrower will have, more it will lend to him an important sum with a low level of interest. Conversely, less the borrower will have credit with the eyes of the lender, plus this one will be sensitive to the cold, require important guarantees and will lend the money to a high interest rate.

Data processing methods of " Scoring of credit " or credit scoring, consisting in allotting a note quantified to the capacity of refunding of a borrower starting from various information (returned, debt…) are used to facilitate the analysis for the simplest operations of credit (consumer credit, credit card…)

Credit and interests

The interests represent the remuneration of the risk of the lender. In France, the concept of interest is accompanied by a rate referent, in fact here " limite" , which is the attrition rate. An attrition rate is allotted to each category of loans, and this rate corresponds, by category, with the last three months average of the rates used by the whole of the financial actors lenders in France, Banques and financial institutions comparable.

TEG: the rate global manpower

In fact the rate is supposed to represent the real costs for the customer user; it intêgre OBLIGATORY associated costs BY CONTRACT, namely fresh of files, various commissions, cost of particular guarantees. In practice, much of elements are presented in an optional way (example of the insurances) and are thus not just in the TEG. It is in addition necessary to still distinguish additional costs related to services (maintenance for example for an automobile credit) at the additional cost from insurance. The current practice is to develop products and solutions of financing being connected with hirings and not concerning the obligation to produce the TEG by contract. There is in this field a advance to make so that the professionals produce a level of information sufficient and clear.

Categories

The Banque S, which are the leading vendors of credit, as well with the private individuals as with the companies, generally distinguish the appropriations:
  • in the short run (of 1 day at 2 years),
  • in the medium term (from 2 to 7 years),
  • and long-term (beyond).
(detail: to see Standard bank credits). This cutting is not very rigorous and varies from one bank to another.

In addition one generally distinguishes:

  • the Ready , a sum determined to refund with one or more expiry S determined,
  • the Revolving credit or the Cash advance corresponding to the right to at will borrow money from the bank within limits of duration and amount. For the recipient, the interest is to use the money according to its need and thus to borrow only the bare essential. It is the case in particular of the Credit line, the Crédit révolving or the Autorisation of discovered. The authorization that the bank gave calls a Accréditif .

See too

  • Generic of cinema

Be-X-old: Крэдыт

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