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Free Books / Finance / Modern Banking / | ![]() |
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Credit. Definition of Credit |
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This section is from the book "Modern Banking; Commercial And Credit Paper", by Frederick Silver. Also available from Amazon: Modern banking; Commercial and credit paper.
Credit may be broadly defined as the power to get goods in exchange for a promise or contract to deliver an equivalent at some future time. In other words, it is a promise to pay money in the future in exchange for some consideration received in the present. Thus, a man is said to have good credit if he has the reputation among his business friends of paying his debts promptly when due. A firm is said to obtain a line of credit with another business house or from a bank, if its financial and moral standing is such as would support the "credit," with assurances that it will be met at the proper time.
 
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banking, credit practice, bank acceptances, trade acceptances, commercial banking, commercial credits, federal reserve, regulations, counsel, discount markets, credit systems , forms, agreements, acceptances, foreign trade, negotiable instruments, taxation, warehouse laws, investments, foreign financing, finance
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