different types of credit
For this assignment, you will write a three page research paper in which you describe the different types of credit used by your manufacturing company. In this paper, please address the following questions:
- What types of credit does the company use and how are they managed? How would you measure the different forms of debt?
- What types of credit does the company extend to individuals and businesses and how are these managed? How would you measure the different forms of credit?
- How does the company’s level of debt and credit compare to other companies within the industry?
- What changes would you recommend? How could the company improve either its debt policies, credit policies, or both?
………………..Answer preview……………..
What types of credit does the company use and how are they managed? There are two general categories of credit that are used namely, open ended and close ended credit. Open ended credit is also referred to as revolving credit, this type of credit can be used repeatedly in making purchases that will be made monthly though the full amount that is due monthly is not required. The most common type of the revolving credit are credit cards, also home equity loans also fall in this category. Close ended credit is used to finance a specific goal or purpose for a specific amount of time. It’s also referred to as instalment loans because the customers are required to follow a regular payment schedule which includes the principal and the interest. To manage credit the company monitors the credit files and keeps them updated……………………………………
APA
865 words
