Commercial Credit

Commercial Credit
A pre-approved amount of money issued by a bank to a company that can be accessed by the borrowing company at any time to help meet various financial obligations. Commercial credit is commonly used to fund common day-to-day operations and is often paid back once funds become available.

Also commonly referred to as a "commercial line of credit" or "business credit"

Commercial credit is often used by companies to help fund new business opportunities or to pay for unexpected charges. For example, imagine that XYZ Manufacturing Inc. has the chance to buy a piece of much needed machinery at a deep discount. Let's assume that the piece of equipment normally costs $250,000, but is being sold for $100,000 on a first-come, first-serve basis. In this example, XYZ Manufacturing could access its commercial credit agreement to get the required funds immediately. The firm would then pay the borrowed amount back at a later date.


Investment dictionary. . 2012.

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  • Commercial credit reporting — is the maintenance and reporting of credit histories and risks for commercial companies. While most people are familiar with consumer credit reports many are unaware that a similar reporting system exists to assess risk in extending loans to… …   Wikipedia

  • commercial credit — credit issued by a bank to a business to finance trading or manufacturing operations. * * * …   Universalium

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  • commercial credit — noun credit granted by a bank to a business concern for commercial purposes • Hypernyms: ↑credit * * * noun : credit granted by a bank to a business concern to finance commercial transaction * * * credit issued by a bank to a business to finance… …   Useful english dictionary

  • commercial credit — A letter of credit used to facilitate sales of goods (especially in international transactions) by insuring payment of the price to the seller beneficiary upon her compliance with the terms of the credit procured by the buyer customer …   Black's law dictionary

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  • commercial credit company — A US finance house that gives credit to businesses rather than individuals …   Big dictionary of business and management

  • commercial credit company — Company which extends credit and finances dealers and manufacturers …   Black's law dictionary

  • commercial credit company — Company which extends credit and finances dealers and manufacturers …   Black's law dictionary

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