What does the concept of business credit mean?

Commercial credit refers to the lending relationship between enterprises formed due to deferred payment or advance receipt of goods in commodity transactions. Specific forms include accounts payable, notes payable, accounts receivable, etc.

Advantages: The biggest advantage is that it is easy to obtain. Without cash discounts or the use of non-interest-bearing notes, commercial credit financing is not costly.

Disadvantages: Higher cost when giving up cash discounts.

The main forms of commercial credit are: purchase of goods on credit, advance receipts and commercial bills.

Commercial credit is one of the most important components of the social credit system, and because it has great externality, it affects the development of other credits to a certain extent.

From a historical perspective, traditional Chinese credit is essentially a moral concept, which consists of two parts, one part is the private credit of the self-sufficient identity-based acquaintance society, and the other part is the commercial credit of the interdependent contract society.

1. Commercial credit refers to the credit provided between buyers and sellers when goods or services are provided on credit. Commercial credit is the earliest form of credit that directly serves production. Buying and selling goods in this way, when the goods change hands, the buyer does not pay cash immediately, but promises to pay after a certain period of time.

In this way, the two parties form a debt relationship in which the seller is the creditor and the buyer is the debtor. The commercial credit provided by the seller is equivalent to lending a sum of capital to the other party, and the buyer is therefore liable to pay interest. Commodities sold on credit are generally higher than commodities bought and sold in cash, and the difference forms the interest paid by the purchaser on credit to the seller on credit Commercial credit has the following characteristics:

Commercial credit is the credit provided between commodity producers in the form of commodities, and the capital lent is the commodity capital to be realized; Commercial credit is mainly the credit provided by functional capital to each other in the purchase and sale of goods; The degree of development of commercial credit is directly dependent on the state of commodity production and circulation.

Commercial credit is the foundation of bank credit and even the entire credit system. 2. Bank credit refers to the credit provided by banks in the form of deposits, loans, etc., mainly in the form of money. Bank credit is produced to meet the needs of industrial capital circulation, turnover and reproduction movement.

Commercial credit is the credit provided by the seller to the buyer when the enterprise is in the first commodity. Between enterprises, if you buy my things, I can allow you to pay for them after a period of time, which is called commercial credit, simply put, the credit relationship between enterprises and enterprises through the exchange of goods, called commercial credit. The two basic ways of business credit are selling on credit and prepayment.

Commercial credit refers to the lending relationship between enterprises formed due to deferred payment or deferred delivery in commodity transactions, that is, in the exchange of commodities, the direct credit behavior between enterprises formed due to the separation of commodities and money in time and space.

Commercial credit has always existed, and in ancient times, it was said that Tong Su was not bullied, and there was no shortage of catties or two that was to have a business reputation. In modern society, I am afraid that the scope is more extensive: one is one, and commitment is gold; Honesty is the foundation of business.

To build a harmonious society, integrity is the foundation, not only business but also credit.

The difference and connection between commercial credit and bank credit are as follows:

1. Difference: commercial credit is commodity capital, and bank credit is monetary capital; Creditors of commercial credit are the same as debtors, and they are both functional capitalists. The debtor of bank credit is a monetary capitalist, and the debtor is a functional capitalist; The dynamics of commercial credit and industrial capital have always been inconsistent, while the dynamics of bank credit are inconsistent.

2. Contact: Commercial credit is the basis of bank credit; Commercial credit will only become bank credit when it reaches a certain foundation; Bank credit is a further improvement of commercial credit.

Bank credit is the form of credit provided by banks and other financial institutions to customers in the form of money, and is a form of capital financing carried out by banks as intermediaries. Indirect financing, also known as "indirect finance", refers to the possession of temporarily idle monetary funds.

The units through the form of deposits, or the purchase of banks, trusts, insurance and other financial institutions issued by the price, the temporarily idle funds to these financial intermediaries, and then by these financial institutions in the form of loans, discounts, or through the purchase of funds issued by the unit issued by the price, the silver code prudent funds to these units to use, so as to achieve the process of financing.

Bank credit is credit provided by a bank or other financial institution in the form of money. Bank credit is developed on the basis of commercial credit along with the emergence of modern banks. Bank credit and commercial credit together constitute the main body of modern economic and social credit relations.

Unlike commercial credit, bank credit is indirect credit. In bank credit, the bank acts as a credit medium. Marx.

Described it this way:"Banker.

The concentration of borrowed money capital in its own hands in such large quantities that the industrial capitalist and the commercial capitalist are opposed not as individual money lenders, but as the bankers as representatives of all lenders. Bankers become the general managers of money capital. On the other hand, since they borrow for the business community as a whole, they also concentrate the borrowers in opposition to all the lenders.

On the one hand, the bank represents the concentration of the capital of the goods and the concentration of the lenders, and on the other hand, the concentration of the borrowers. "

Forms of commercial credit: accounts payable, notes payable, advance receipts, accrued unpaid.

1. Accounts payable.

Accounts payable is the commercial credit provided by the first merchant to the enterprise. **The cost of waiving the cash discount is high when the merchant stipulates a cash discount in the credit terms. The cost of waiving the cash discount is:

2. Bills payable.

Bills payable refer to the settlement method of commercial bills. Commercial bills include commercial acceptance bills and bank acceptance bills. Notes payable are divided into notes payable with interest and notes payable without interest according to whether they are interest-bearing or not.

3. Advance receipt.

Advance receipt of payment refers to the credit behavior of the selling unit in accordance with the provisions of the contract and agreement to collect part or all of the payment from the purchasing unit in advance before sending the goods.

4. Accrued unpaid.

Accrued unpaid is the amount that has been accrued but not yet paid in currency in the process of production and operation and profit distribution. It mainly includes employee remuneration payable, taxes payable, profits payable or dividends payable, etc.

Features of Business Credit:

1. Commercial credit is the credit provided in the form of commodities between commodity producers or between producers and sellers, and the capital lent is the commodity capital to be realized.

2. Commercial credit is mainly the credit provided by functional capitalists to each other in the purchase and sale of commodities.

3. The degree of development of commercial credit is directly dependent on the state of commodity production and circulation.

That is, the quantity and scale of commercial credit are compatible with the quantity and scale of industrial production and commodity circulation, and are consistent with the dynamic trend.

Forms of business credit: accounts payable, notes payable, advance receipts, and accrued unpaid.

1. Accounts payable.

1.**A business credit provided by a business to a business. Commercial credit conditions often include the following two types:

1) There is a credit period, but there is no cash discount. For example, "n 30" means that the invoice amount will be paid in full within 30 days.

2) There is a credit period and cash discount, such as "2 10, n 30" means that the payment within 10 days can enjoy a cash discount of 2%, if the buyer gives up the discount, the payment must be paid within 30 days.

The purpose of the cash discount is primarily to accelerate funding**. Businesses should consider carefully when deciding whether or not to avail of a cash discount. Usually, the cost of giving up a cash discount is high.

Tip] The cost of credit for waiving cash discounts. If the buyer company purchases the goods and pays within the discount period specified by the seller, it can receive free credit, in which case the business does not pay the price for obtaining the deferred payment credit.

The credit cost of giving up the cash discount is positively correlated with the size of the discount percentage and the length of the discount period—the more favorable the discount terms and the greater the benefit of enjoying the cash discount, the greater the cost of giving up the cash discount.

The credit cost of waiving the cash discount is negatively correlated with the length of the payment period: the longer the payment period, the greater the deferred payment benefit of giving up the cash discount, which relatively reduces the benefit of enjoying the cash discount and the cost of waiving the cash discount.

In the case of waiver of discounts, the longer the payment is deferred, the smaller the credit cost, but the creditworthiness will deteriorate;

The credit cost of waiving a cash discount is independent of the amount of the purchase price and the amount of the discount.

2.Reasons for Credit Decisions to Abandon Cash Discounts:

1) It may be a temporary lack of corporate funds;

2) It may be based on using accounts payable for temporary short-term investments in order to obtain higher investment returns. If an enterprise uses the amount of accounts payable for short-term investment and obtains a higher rate of return on investment than the credit cost rate of the waiver discount, the cash discount should be waived.

2. Notes payable.

It refers to the commercial credit generated by the use of commercial bills in the purchase and sale of goods and the settlement of project prices.

3. Advance receipt.

1) The credit given by the buyer to the seller.

2) Applicable to: in-demand goods (buyer's wishes); Goods with long production cycles and high cost (the willingness of the seller).

4. Accrued unpaid.

Payments that have been accrued but not yet paid in currency in the course of production and operation and profit distribution.

It mainly includes employee remuneration payable, tax payable, profit payable or dividends payable, etc.