Credit

The term credit comes from the Latin or was derived from the Latin from the terms credit "the entrusted" and credere "believe". A loan not only describes the transfer of money, as is generally assumed, but can also represent the transfer of goods for use. In this case one speaks of a trade credit. The loan is one of the most commonly used forms of credit, it is a so-called transfer of use of monetary assets or goods (loan in kind) . The borrower receives the money or the goods from the lender, a fixed term and a repayment are set, and in the case of monetary values ??also an interest rate. The loan is usually transferred to a previously opened special account of the borrower, in contrast to the cash advance where the amount is transferred to the already existing account (e.g. current account) is transferred. In contrast to the loan, there is no fixed repayment agreement with the loan, since the loan volume can be used again after the settlement has been made. There are special forms of credit for business customers as well as for private individuals, the borrower must in any case meet certain requirements in order to receive a loan.

Private customers: (regulated by consumer protection)

• must have reached the age of majority
• the credit check must be positive
• the income must be sufficient in relation to the loan
• there must be no negative Schufa entry
• no affidavit must have been submitted
• there must be no insolvency proceedings
• or the current account will be blocked

Business customers:

The consumer protection regulations do not apply to business customers. Since the companies have direct access to the capital market in some cases, the transitions between loans and other forms of financing are fluid. There are various forms of credit in the business sector, which are then listed here.

• Investment Loans
• Working capital loans
• Commodity Financing
• promissory note loan
• Guarantee credits
• discount loans
• Reimbursement loans