1. Introduction to Business
The Fundamentals of Credit

2. What is Credit
Credit – Privilege of using someone else’s money for a period of time.
Promise to repay the amount owed at a future date.
Pay back amount borrowed and maybe interest

3. What is Credit Two parties
Creditor – One who sells on credit or makes a loan
Debtors– One who buys on credit or receives a loan

4. Types of Credit
Loan Credit – Borrow money to be used for some special purpose
Available through:
Financial Institutions, Banks, Credit Unions, Savings and Loans Associations, and Finance Companies
Sales Credit – Charge a purchase at the time you buy
Charge Accounts or Credit Cards