The four benefits of credit to the entire company are:
Increase the Usefulness of Money
Improve Money Circulation
Motivate Business Progress
Increasing the Usability of Production Goods
Detail of Explanation:
Credit is a service for lending funds from financial institutions to customers. The loan must be repaid within the agreed period along with the interest.
The loan proceeds are used to meet the needs of the community, such as buying goods, adding property or vehicle assets, developing a business, or increasing the stock of goods.
Credit actually comes from the Italian language, namely credere which means trust. From the language aspect, you can conclude that credit is a form of trust from the creditor (the creditor) to the debtor (the credit recipient).
When borrowing a certain amount of money, the creditor believes that the debtor will return the borrowed funds along with the interest.
The loan is returned not past maturity and according to the agreement between the two parties. Payment of the loan funds can be made in one payment or in installments.
Credit Benefits
Credit also carries a great function for the people of Indonesia. So, what are the functions of credit for them? Check out the explanation below. that is:
Increase the Usefulness of Money
The usability of money increases when it is used by the community. Therefore, banks do not only provide deposit services. Loan services were launched to keep money productive and generate profits for banks.
Improve Money Circulation
Business credit is used to procure goods and services of a business. If businesses already have their products, they can make trade transactions with their customers. As a result, the circulation of money in an area also increases thanks to the use of these credits.
Motivate Business Progress
The average entrepreneur immediately backs down when they find out that the amount of business capital needed is not small. Credit services serve to motivate entrepreneurs in advancing their business. They do not need to delay business development because they can borrow some funds first.
Increasing the Usability of Production Goods
One of the reasons people need credit is to develop their products. Credit assistance from banks is useful as capital to improve product quality. Entrepreneurs can use raw materials of the best quality so that the usability of goods increases.
Answers & Comments
The four benefits of credit to the entire company are:
Detail of Explanation:
Credit is a service for lending funds from financial institutions to customers. The loan must be repaid within the agreed period along with the interest.
The loan proceeds are used to meet the needs of the community, such as buying goods, adding property or vehicle assets, developing a business, or increasing the stock of goods.
Credit actually comes from the Italian language, namely credere which means trust. From the language aspect, you can conclude that credit is a form of trust from the creditor (the creditor) to the debtor (the credit recipient).
When borrowing a certain amount of money, the creditor believes that the debtor will return the borrowed funds along with the interest.
The loan is returned not past maturity and according to the agreement between the two parties. Payment of the loan funds can be made in one payment or in installments.
Credit Benefits
Credit also carries a great function for the people of Indonesia. So, what are the functions of credit for them? Check out the explanation below. that is:
The usability of money increases when it is used by the community. Therefore, banks do not only provide deposit services. Loan services were launched to keep money productive and generate profits for banks.
Business credit is used to procure goods and services of a business. If businesses already have their products, they can make trade transactions with their customers. As a result, the circulation of money in an area also increases thanks to the use of these credits.
The average entrepreneur immediately backs down when they find out that the amount of business capital needed is not small. Credit services serve to motivate entrepreneurs in advancing their business. They do not need to delay business development because they can borrow some funds first.
One of the reasons people need credit is to develop their products. Credit assistance from banks is useful as capital to improve product quality. Entrepreneurs can use raw materials of the best quality so that the usability of goods increases.
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