Managing Creditworthiness

Managing Creditworthiness

Introduction

The term credit is derived from a Latin word credo that means I believe. It is a kind of trust in which one person provide resource (capital etc) to the other person immediately, and in return the second person is liable to repay the borrowed resource at some future date. Credit (borrowing, lending) helps the economy by transferring money from surplus spending units to deficit spending units. Credit is solely dependent on the creditworthiness of an individual or an entity that is going to borrow money from the lender. Creditworthiness of large corporations is assessed by the ...