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A contractual agreement in which a corporation receives value, usually in the form of a financial loan, and must repay the institution from which it received the loan or other items as per the terms of the agreement.
"Corporate credit" means bridging the Short Term, Medium and Long Term Fund requirements of a well established business house. This is a pre-adjestment from the Sahre holders point of view to maximise NAV, and a well calculated pre-defined gap for a banker to safe finance with either fully or with sharing/syndiacation.
Good Question and good answer Mr Vinod
Corporate credit is an agreement reached between a corporation and a vendor or lender that allows the corporation to acquire something of value now and pay for the acquisition at a later date. The acquired goods and services may include anything from financial loans to raw materials for production and manufacturing. Corporations often function with the use of corporate credit rather than relying on purchases made on a strictly cash basis.
In the broadest sense, corporate credit is very similar to individual credit. In both instances, lenders and creditors evaluate the overall status of the applicant, and determine if extending credit can take place with a reasonable expectation of repayment. Thus, vendors who sell goods and services that can be utilized by a given business will look at the financial strength of the corporation, the current sales volume, and the general credit rating for the company, and determine if and how much credit to extend.
To receive the financial loans to operate and payback from the receivables.
