Category:Credit

From Economypedia.com

Credit denotes the borrowing of money by one party from another which is returned at a specified time in the future. A contractual agreement is drafted that determines the amount of money to be credited to the borrower and the date on which the amount is to be repaid. The amount credited is determined according to the capacity of the individual or the company borrowing the money. Interest is also charged for the amount credited by the bank or lender.

Credit also refers to an accounting entry in the balance sheet of the company that increases the liabilities and equity or decreases its assets.