Chapter 9 Business Finance

An aggreement in which a borrower receives something of value in exchange for a promise to repay the lender at a later date

• Credit Agreement

• Collection Procedures

• Credit

• Consumer Credit

The recipient of a crediton is also known as _____

• Delinquent Account

• Debtor

• Creditworthy

• All of the Above

Credit offered to individuals consumers by a business

• Credit Agreement

• Collection Procedures

• Credit

• Consumer Credit

Credit offered to a different business customer by another businesss

• Trade Credit

• Interest

• Factoring

• Self-Managed Credit Plan

Credit is normally extended through a written document describing the terms under which credit is granted and payment will be made. Whats this written document called?

• Credit Agreements

• Collection Procedures

• Credit

• Consumer Credit

The company administers the credit program AND the company assumes all risk and returns

• Trade Credit

• Interest

• Factoring

• Self-Managed Credit Plan

Credit services are provided by a financial services firm for a fee

• Contracted Credit Plan

• Collateral

• Character

• Credit Standards

Guidelines used by a company to determine if a customer is eligible for credit

• Contracted Credit Plan

• Collateral

• Character

• Credit Standards

A customer who has characteristics making it highly like that credit payments will be made on time and in full

• Charge-Off

• Capacity

• Capital

• Creditworthy

The personal qualities of the applicant that demonstrates responsibility and dependability

• Contracted Credit PLan

• Collateral

• Character

• Credit Standards