Credit

Today most businesses run on credit and there are various types of credit used in the business world. Probably businesses don’t have enough amounts of cash to meet the day to day needs of business and as well as other business transactions, but through credit, they can meet all these expenses easily. Also the general public various types of credit to enhance their lifestyle.  The term “Credit” refers to purchase in which price is not paid in cash, instead a document is given by the purchaser in acknowledgment of his debt. The document is called “Instruments of Credit”. A credit transaction therefore is a protected exchange. Credit involves confidence in the person’s honesty and integrity. Thus the fundamental elements of credit are time and trust.