Credit – Ability to obtain a certain amount of money with a promise Family Corporation – Investor’s POV – Sila Mamumuhunan

to pay at a definite time

Stock – Equity Market
- Walang nakukulong
Can earn thru: Capital Share/Capital Gains and Dividends
Negotiable Instrument: (Pwedeng Makulong)
Bonds – Debt Market
1. Promissory Note - A promissory note, sometimes referred
Can earn thru: Interest
to as a note payable, is a legal instrument, in which one
party promises in writing to pay a determinate sum of -Maturity Period – You can get principal amount
money to the other, either at a fixed or determinable
future time or on demand of the payee, under specific - Contract – Can be quarterly/yearly
terms and conditions.
Per Quarter Makukuha interest per year ang interest
2. Current Account – Checking account
Interest First ang bigay bago ang capital
Draw against insufficient funds (DAIF) - If a transaction draws
money from a bank account while the account balance is lower than Company sells shares of stocks to have funds for capital
the amount drawn, the account will thus be in the insufficient funds
Breach of Contract – Di pagsunod sa kontrata
status.
Dead Person is not equal to Dead Utang
Draw against unfunded funds (DAUF) - If a transaction draws money
from a bank account while the account balance is zero. Writeoff or Condonation – gagamitin pag namatay yung may utang

CRECOM – Credit Committee To avoid problems: Before pautang, have group life insurance

CASA - Current account savings accounts Para yung pera mapupunta muna sa inutangan and then yung
matitira is ibabalik sa pamilya nung namatay.
ESTAFA – Isang talbog ng cheke
Example: 100k yung insurance, May 50k na utang yung namatay.
Syndicated Estafa – Madaming talbog ng cheke Yung 50k mapupunta muna sa inutungan and then yung 50k dun sa
pamilya ng namatay. Win-Win Situation
Credit as Financing (Interrelated Activity of Business)
Net Proceeds – 100k inutang. May 10% interest. 90K na lang
ipapautang pero 100k yung need mo bayaran.
1. Investing (Capital) – Lifeblood of Business
2. Operating – Day-to-Day Operations Pawnshop – Registered to BSP
a. Includes AR and AP
3. Financing (Credit) – Face Value - Quasi Financial Institution
- Pawner, Pawnee, Pawn
5cs of Credit
Pawn Ticket – Receipt – Papel De ahensya
1. Character – Face Value, borrower’s reputation or track
Proceed – Mas mababas sa tunay na halaga ng alahas
record for repaying debts
2. Capacity – Work/Networth/Portfolio, borrower’s ability to Sangla Tubos
repay a loan
3. Capital - Capital contributions indicate the borrower’s level Over Redemption - Remata
of investment, which can make lenders more comfortable Lagpas ng Redemption Period
about extending credit.
4. Collateral - gives the lender the assurance that if the Principal – Borrower
borrower defaults on the loan, the lender can get
something back by repossessing the collateral. Mga ari- Co – Maker – Solidary Liable
arian
Guarantor – Not Solidary Liable
5. Condition – Terms, The conditions of the loan, such as the
interest rate and the amount of principal, influence the
lender’s desire to finance the borrower.

Account Receivable – Need makolekta ASAP

Account Payable – Pwede patagalin