Comparison of Merchandise and Bank Credit
Merchandise and bank credit are similar in many respects. Their objective is the same, namely to foster production and trade. The customer of the merchandise house is also generally the client of the bank. Both bank and trade supplier grant credit on a short-term basis. Credit granting by the merchandise creditor and banker is governed [...]
What Does a Bank Do?
A bank, or similar financial institution, is usually the most important short-term creditor of a business other than its trade creditors. Some of the purposes for which banks grant short-term loans to businesses are: To finance seasonal needs. To finance a temporarily large inventory. To finance a temporarily large amount of accounts receivable. To finance [...]
Credit Antecedents: Method of Operating
You should already have gathered information about the industry in which the firm operates. This can give you a very good idea about the operations of the particular firm with which you are dealing; however, more specific information is desirable. You must first determine which of the following categories the business falls into: Retailing (the [...]
Credit Antecedents: Background of the Principals
In most cases the best situation is one where personnel are well balanced according to experience and age. Ideally, any company or partnership should consist of two or more active members experienced in the line of business, with their particular abilities developed in different directions (sales, production, and finance). As to age, the following factors [...]
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