The credit period of bank loans, also known as the credit period, refers to the time interval between the purchase of goods and the payment of goods. The sales volume of enterprise products has a certain dependence on the credit period. Determining the credit period is an important part of credit management, and the purpose of determining the credit period is to make enterprises get more profits.

The credit period has an impact on the profitability of enterprises in two ways:

First, the credit period will affect the cost of the enterprise. The longer the credit period, the greater the cost borne by the enterprise;

Second, the credit period affects the competitiveness of enterprises in the market. The longer the credit period given by the enterprise, the lower the price paid by the customer when purchasing the goods, the more competitive the products are in the shopping mall, and the greater the market share obtained by the enterprise. Therefore, the best credit period depends on the balance between the two.

Extended data:

The credit range of bank loans

1. Maximum credit line of the whole bank to all regions.

2. The maximum credit line of the whole bank to a single customer.

3. The maximum credit line of a single branch to the service area under its jurisdiction.

4. The maximum credit line of a single business department and branch to a single customer.

5. Credit lines granted to a single customer in different ways (loan, discount, guarantee, acceptance, etc.). ).

6. Credit lines that need to be increased due to changes in regions and customers.

7. Due to changes in the national monetary and credit policies and markets, it has exceeded the additional credit granted by the basic credit.

8. Temporary credit for special project financing.

Baidu Encyclopedia-Credit Terms