True or False
T or F: Capacity is the inability of a business to repay a loan
False
Credit extended by a business to another business is called _____ credit
Trade
amount of money borrowed
Principal
Sammy owes Oscar money for tutoring him, Oscar is an example of a
Creditor
A numerical measure of a loan applicant's creditworthiness at a particular point in time
Credit Score
T or F Banks provide 2 types of business finance being: business loans and lines of Credit
True
Bad debts decrease the ___ ______ of a business
Net Income
Credit granted to a business by a financial institution or another company
Business credit
Da'quan bought a Ferrari using a loan he got from Danny, Da'quan is an example of a
debtor
a company that collects past-due bills for a fee
Collection Agency
T or F:Payment history has the largest influence on your credit score than anything else
True
equity is also referred to as _______
Capital
Credit loans that require collateral are known as
Secured Credit
Principal
A record of credit history for a business or individual
Credit Report
T or F: Small Businesses tend to use credit cards for long-term credit needs
False
Cash Flow, Capacity, Capital, ______, and _______ are the 5 C's of Banking
Collateral and Conditions
The annual cost of credit charged by a lender
annual percentage rate (APR)
Jay wanted to borrow money from his friend. His friend decided to let him borrow money but he would have to give him something of value to Jay . This would be considered
secured Credit
A card that can only be used in stores of the company that issued it
Proprietary credit card
T or F the greater the amount of capital, the less likely the business can get a loan
False
Capacity
the continued and regular patronage of a business even when there are other places to purchase the same or similar product
Customer Loyalty
Using a proprietary credit card can limit what you can do with your money on the card because of what?
The cards can only be used at the store that issued it
an established amount of money a bank makes available for a business
business line of credit