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Full faith and credit |
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Full faith and creditEffectively a guarantee of payment of interest and repayment of principal of a bond issued by a government authority.Similar MatchesRevolving line of creditRevolving line of creditA bank line of credit on which the customer pays a commitment fee and can take and repay funds at will. Normally a revolving LOC involves a firm commitment from the bank for a period of several years. Creditor daysCreditor daysA ratio used to work out how many days on average it takes a company to pay its creditors. Calculated by dividing the trade creditors shown in its accounts by its sales, and then multiplying by 365.E.g. A company with creditors of £900,000 and sales of £12m, takes an average 27.37 days to pay its bills.Within reason, the higher the number the better, although if a company is very slow in paying its creditors (say 100 days plus) it is worth asking if this is because it has problems generating enough cash quickly enough to pay them. Credit analysisCredit analysisEvaluating information on companies and bond issues in order to estimate the ability of the issuer to live up to its future contractual obligations. Related: Default risk. Backup Line of CreditBackup Line of CreditA bank assurance of funds obtained by an issuer of commercial paper to protect the CP investor from default. The issuer pays a commitment fee to the bank. Unified tax creditUnified tax creditA federal tax credit that reduces tax liability, dollar for dollar, on lifetime gifts and asset transfers at death. Further SuggestionsExport Credits Guarantee DepartmentCreditors committee Retail credit Revolving credit agreement Trade credit Credit balance Usance Letter of Credit Earned income credit Credit card Open end credit Eurocredit market credit card Equity Line Of Credit Credit Standards Time Letter of Credit Credit agencies Evergreen credit Foreign tax credit Credit Demand line of credit Consumer credit Trade credit Federal Intermediate Credit Bank Credit history Syndicated Eurocredit loans |
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