Chapter 16 Flashcards
(11 cards)
Proprietary credit card
A card that can only be used in the stores of the company that issued it
Credit policy
A written set of guidelines used by an organization to determine how many and which customer will be approved for credit
Three Cs of credit
Criteria used to evaluate the creditworthiness of consumer credit applicants
Credit report
A record of credit history and financial behavior for a business or individual
Credit bureau
A private firm that maintains consumer credit data and provides credit information to businesses for a fee
Credit score
A numerical measure of a loam applicant’s creditworthiness at a particular point in time
Credit risk
The potential of credit not being repaid
Accounts receivable
A list of the individuals or businesses that owe money to a company
Accounts receivable aging report
Shows when accounts receivables are due, as well as the length of time accounts have been outstanding
Collection agency
A company that collects past-due bills for free
Five Cs of banking
Criteria lenders use to evaluate the creditworthiness of businesses
