CLASSIFICATION AND

SOURCES OF CREDIT
By: Jan Dane Abilgos
 TABLE OF CONTENTS

01 Classification of credits
02 Sources of Credit -
Financial Intermediaries

Specific Types of Credit

03 Sources of Credit - Non-
Financial Intermediaries
04 Available to Business and
Consumers
Classification of Credit
● Consumer Credit
● Trade Credit
● Bank Credit
● Investment Credit
● Agricultural Credit
● Export Credit
● Public Credit
 Consumer Credit
Consumer credit is personal debt taken on to
purchase goods and services. A credit card is
one form of consumer credit.
● Charge Account
• Installment Credit
• Revolving Charge Account
• Personal Loans
Open credit:

Trade Credit
Trade credit is a business-to-business (B2B)
agreement in which a customer can purchase
goods without paying cash up front, and
paying the supplier at a later scheduled date.
Usually, businesses that operate with trade
credits will give buyers 30, 60, or 90 days to
pay, with the transaction recorded through an
invoice.
 Bank Credit

● Commercial loans
● Real estate loans
● Investment Credit
● Agricultural Credit
● Export Credit
● Public Credit
Sources of
Credit - Financial
Intermediaries
 Sources of Credit -
Financial Intermediaries

Commercial and central banks serve as financial

intermediaries by facilitating borrowing and lending on
a widespread scale. Credit unions and building societies
also work in the same way, but on a cooperative basis.
Sources of Credit - Non-
Financial Intermediaries
 Sources of Credit -
Non - Financial Intermediaries

Non-bank financial intermediaries are thus a

heterogeneous group of financial institutions other than
commercial banks. NBFIs include such institutions as
life insurance companies, mutual savings banks, pension
funds, building societies, etc
Specific Types of Credit
Available to Business and
Consumers
 Credit Business
Business credit is your business’s ability to
borrow. Your business credit score influences
your access to credit products such as credit
cards and loans, giving credit agencies, lenders,
vendors and suppliers an indicator of how you
handle your debts and your likelihood of paying
them on time.
 Consumer Credit
Installment credit is used for a specific purpose and is
issued at a defined amount for a set period of time.
Payments are usually made monthly in equal installments.
Installment credit is used for big-ticket purchases such
as major appliances, cars, and furniture. Installment credit
usually offers lower interest rates than revolving credit as
an incentive to the consumer.
THANK YOU!