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What is credit?


The word credit comes from the Latin and means, literally translated: "It has in its favor". In accounting "credit" is synonymous with "to have".
In the sense of a national economy credit and the transfer of purchasing power by the money delivery (the creditor), the borrower (the debtor), and is also purchasing power without being in possession of money on the mere basis of trust. The creditor A gives an amount of money to the debtor B, so that it makes him work for a certain time.
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The credit consists not only of the amount of money that A transfers to B through compensation, but also in the economic trust that the creditor deposits in the debtor. There are several types of credits in economy: private, public, real estate, etc.
Corporate credit, which is of interest to us, would be in general terms a credit in national or foreign currency, for natural or legal entities, and which would be used to finance urban and rural business activities of production (agriculture, Pests , recycling, etc.), commercialization of goods and provision of services.
More important than all technical peculiarities is the question of how banks lend, that is, whether they merely transmit existing purchasing power and save or create additional purchasing power.
Finally, the financing and access to credit systems of micro, small and medium enterprises cannot be solved in isolation. These are part of a comprehensive support system for smaller enterprises, where support for training, articulated productivity and segmented innovation are also basic elements.

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