Credit

A credit is a more flexible form of finance that allows you to access the amount of money loaned according to your needs at any given time. The credit sets a maximum limit of money that a customer can use in part or whole. The customer may use the available cash either fully or partially. A customer may also decide not to use it at all.

The usual ways to obtain finance through credit are credit cards and credit facilities or lines of credit generally arranged through a current account in which deposits and withdrawals could be made up to the agreed limit.

Credits are usually used to cover delays between receipts and payments for companies, to deal with specific periods of lack of liquidity, or for particular purchases. On the other hand, loans are often used to finance the purchase of goods or services.