What are the advantages of bank credit over commercial credit

Bank credit is created and developed on the basis of commercial banks.

Advantages of bank credit:

1.Overcoming the limitations of commercial credit in the modern commodity economy.

In recent decades, bank credit has continued to develop, and lending capital has gradually been concentrated in the hands of large banks, and later large monopolies.

services, which facilitates the integration of bank capital. Bank credit has become the most basic and dominant form of credit in the modern economy.

2.Large scale, low cost and low risk.

3.Ability to create credit. Loans are granted to enterprises, and enterprises can re-lend to other enterprises if needed.

Extended Resources:

Business Credit

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 in advance.

Wait. Advantages and disadvantages of commercial credit financing:

Advantages: The biggest advantage is that it is easy to obtain. If there is no cash discount.

or the use of non-interest-bearing notes, commercial credit financing does not bear the cost.

Cons: Higher cost when giving up cash discounts.

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.

Describe 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.

The bankers became the general managers of the money capital, and since they borrowed for the whole business world, they also pooled the borrowers in opposition to all the lenders. Banks represent the concentration of money capital, the concentration of lenders, on the one hand, and the concentration of borrowers on the other.

Commercial credit refers to the credit provided by enterprises in the form of deferred payment or advance payment when buying and selling goods.

Bank credit is the credit provided by banks to industrial and commercial enterprises in the form of money, it is an important form of modern credit economy, which is produced and developed on the basis of commercial credit, and at the same time overcomes the limitations of commercial credit.

Commercial credit is the credit between enterprises, and both enterprises are responsible.

Bank credit is the bank guarantee to be responsible, the bank and the bank are one, the bank and the enterprise is also one, the relationship between the bank and the enterprise, the bank credit, to put it bluntly, is the bank commitment, the credit is relatively high.

Commercial credit is the business activities such as mutual credit between enterprises.

It depends on the level of trust between each other.

Bank credit is the provision of financing by banks in the form of money.

A rating given to the financed person from the course of business.

The difference and connection between business credit and bank credit.

Business credit and bank credit are different concepts and have no similarities between them. 1. Commercial credit:Specific forms include accounts payable, notes payable, accounts receivable, etc. Advantages and disadvantages of commercial credit financing:

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.

Cons: Higher cost when giving up cash discounts.

2. Bank credit:It is a form of credit that uses banks as intermediaries to raise monetary funds in the form of deposits and other means, and provides funds to various departments and enterprises of the national economy in the form of loans. The borrowers and borrowers of bank credit are monetary capitalists and functional capitalists.

Since the form of credit is money, this overcomes the limitations of commercial credit in the direction of use.

Commercial credit is individual business credit, credit transactions.

The bank's credit performance repays its liabilities.

Business Credit

1. The main body of commercial credit is industrial and commercial enterprises.

2. The object of commercial credit is mainly commodity capital, therefore, it is a kind of physical credit.

3. The changes in commercial credit and industrial capital are consistent. 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.

Bank credit. 1.Overcome business credit limitations. Upstream enterprises lend to downstream enterprises, and downstream can also lend to upstream. It can be gathered into a large amount, or a large amount can be dispersed into a small amount. Meet the different needs of long-term, medium-term and short-term loans.

2.Large scale, low cost and low risk.

3.Ability to create credit. Loans are granted to enterprises, and enterprises can re-lend to other enterprises if needed.

Bank credit has the following advantages over business credit:

a.The bank's credit judgment and use are not limited by the amount of individual capital.

b.Bank credit is not subject to individual capital turnover restrictions.

c.The credit of Yinli Land Bank is not restricted by the direction of commodity circulation.

d.Bank credit is not limited by the amount of currency.

Correct answer: ABC