CREDIT AND COLLECTION MIDTERMS

Trade Acceptance

It is described as an acknowledgement of a debt by the buyer, in favor of the seller for merchandise.

Supermarket

It is largely a brand-new form of retailing, its chief features consist of assembling all kinds of goods including nonfood items, clothing, shoes hardware and countless others.

Charge Account

It is one kind of consumer credit, which is the oldest form of sales and purchase credit.

Pawnshop

Business establishment engaged in lending money on property delivered as collateral.

Personal Loan

A person with a good credit standing may be able to borrow on his signature alone.

Mercantile Credit

It is equally known as commercial credit, sometimes it is as trade credit.

Commercial Loan

It refers to credit that is granted for a short period to help out the borrower with his temporary working capital needs.

Real Estate Loan

These are loans granted to finance the acquisition or improvement of real estate.

Trust Receipts

These are advances made by a bank on behalf of an importer if on the due date.

Investment Credit

It consists of credit advances that have been made to a business enterprise to enable it to purchase or construct necessary plants and equipment.

Agricultural Credit

These are advances used for agricultural development that provide a favorable environment for a built market for the many products of a country’s industries.

Public Credit

It is just another term for government borrowing.

Operating Expense

Kinds of cost which is hardly to point out the observation that business enterprises that extend credit shoulder the same expenses as other businesses.

Credit

It comes from the Latin word “Credere” which means “To Trust”.

Warehouse Receipts

It is a “written acknowledgement” by a warehouse man that hold certain goods, identified by the receipt, for the person to whom the writing is issued.

Creditor

It refers to the one who has both the moral and legal right to demand of his debtor to pay obligation when due.

Standby Commitment

The loan agreement provided the right of securing a term loan under certain specified terms for current or for some future purposes within the time agreed upon.

Borrower

Refers to power the ability to obtain goods without an actual tender of payment.

Term Loans

These are granted by commercial banks to finance the acquisition of facilities such as machinery and equipment by manufacturers.

Personal Loan

It is generally for consumption purposes, thus meeting serious personal obligations.

Revolving Credit

The loans are provided for a business enterprise to finance its needs by borrowing from the bank on a short-term basis up to a certain specified maximum amount.

Sales Finance Companies

It is a private corporate venture in the financing of distribution through the purchase of the vendor’s installment sales contract.

Land Bank

As provided under section 74 of RA no. 2844, is intended to finance the acquisition by the government of landed estates for division and resale to small landholders.

Personal Credit

It is used by individuals to buy consumer goods intended to provide immediate satisfaction to their wants and needs.

Veteran Bank

In accordance with charter, it is authorized to grant loans for the establishment, rehabilitation, expansion or development of any agricultural, commercial or industrial or personal services including public utilities as well as loan on or discount notes.

Installment Credit

It is the most common type of consumer credit today, a number of individual terms as buying on time.

Financial Institution

It is numerous just as they varied in kinds and in scope ranging from pawnshop to such credit institutions as investment houses.

Investment houses

It is an investment bank which is concerned chiefly with the transfer of capital from those who have more funds than they use to those who need them for utilization in long-term activities.

Rural Bank

This term means an open country, or just another name for an agricultural bank.

Trust & Pension Plan Manager

Institutional and personal administration of funds created or constituted for the benefits of others.

Agricultural loans

These are loans to farmers, the purpose of the said loan is to finance the planting, improvement and harvesting of agricultural products.

Savings & Loan Association

It is any corporation engaged in the business of accumulating the savings of its member or stockholders.

Individual Lenders

Source of credit which an individual lends money with interest upon.

International Organization

One class of credit known as public credit that is, one government borrowing from another central bank outside the country.

Interest

It is in the form of Percentage serve as charge for its’ use periodically.

Credit Union

Cooperatives are composed of small producers who voluntarily join to form a business which themselves control and are patronized.

Pledge

It is a bailment of goods by a debtor to his creditor to be kept till the debt is discharged.

Bill of Lading

It is a written account of goods shipped by any person, signed by the agent of the owner of the vessel, acknowledging receipts of the goods and promising to deliver them sale at the port directed.

Chattel Mortgage

These are the objects of mortgage on personal property that are movable.

Packing Credit Advances

These are loans to exporters to finance the processing of exports of goods prior to their being shipped to the foreign buyer.

Open-end

This is a type of mortgage, a corporation may issue bonds in whatever number it may deem proper under the circumstance.

Credit Card

It is a type of device that serves to identify customers as those to whom the store has given a symbol of its confidence in them.

Mortgage on Real Property

These are objects of mortgage on property like land, building, machinery, and factories which are immovable.

Trust Receipts

It is also defined as a “receipt given” by an importer who has loaned money upon importer’s goods.

Close-end

It refers to a mortgage by a corporation used as collateral security for a loan of a fixed amount.

Financial Intermediaries

In many instances, credit transactions are consummated through credit institutions which serve as middleman between lender and borrowers.

Promissory Notes

It is executed by the maker who, as is logical to expect, is the debtor who promises that he will pay the seller the amount owed at a certain determinable time.

Financing Companies

As defined under RA no. 5980 These are the financing corporation or partnership which is primarily organized for the purpose of extending credit facilities to consumer, industrial, commercial or agricultural enterprises.

Commercial Banking

It focuses on products and services that are specifically designed for businesses, such as deposit accounts, lines of credit, merchant services, payment processing, commercial loans, global trade services, treasury services, and other business-oriented offerings.

Government Financial Institutions

It is essential growth for the government to provide the necessary bases for growth.