Credit
What are the 3 C's of credit that help evaluate a customers credit worthiness
Character
Capacity
Capital
What type of credit do you need when starting a business
Business Credit
Debtor
party owes money too creditor
What are some of the rewards of extending credit to customers
Getting credit through credit card, Installment loans
What happens when you overuse your credit for your business
Federal law will come after you
Creditor
Party who money is owed too
What is the trade credit term n/30
buyer has 30 days to purchase net pay amount of purchase
What is the formula to calculate simple interest
PxPxT=Interest
Principal
Amount of money borrowed
What are the 5 C's of Banking that lenders use to evaluate a business seeking credit
Cashflow, Capital, Capacity, Collateral, Conditions
Do you get a loan from the bank when starting a business
yes
Credit Risk
potential of credit not being repaid
Why do some businesses prefer to accept bank-issued credit cards, such as MasterCard and Visa?
Financial Institution is responsible for collecting money owed, not the business
Business pay who for bills
Collection Agency
Unsecured Credit
Credit base on a signed credit agreement