Credit is the social relations that arise between the subjects of economic relations on the movement of value. Credit relations can be expressed in various types of credit (commercial credit, bank loan, and so on), bond, leasing, factoring, and the like. The emergence of credit as a special type of value relations occurs when the value of freed up from one economic entity not entering into a new reproductive cycle. Functions of credit: redistribution, creation of credit instruments of circulation, reproduction and stimulating. Function of creating credit shells treatment is associated with the emergence of the banking system. With the ability to deposit money in bank accounts, the development of cashless payments, set-off of mutual obligations, there were credit facilities of circulation and payment. Catalytic function of credit is manifested in the possibility of production without the presence of their own funds. Thanks to the credit businesses are a powerful incentive for further development. Depending on the value of the real form lent produce commodity, currency and mixed types of credit. Commodity-type of the loan involves a transfer of the temporary use of a particular thing, certain generic features. This type historically existed before the advent of monetary relations occurred. Equivalent to the bond and exchange of specific goods (furs, cattle, grain, etc.), but lenders had been the subjects who possessed surplus items. It ought to be returned a similar property in specified increments, or natural. In modern conditions the commodity type of credit is the delivery of goods with deferred payment, installment sale, rental property, equipment leasing, commercial loans, some variants of escrow. Monetary type of the loan involves a transfer of the temporary use of a specified amount of money. This type is the predominant in the present conditions of the economy. This type of the loan is actively use by all economic agents (government, enterprises, individuals). Mixed type of the loan occurs when the bond was granted in the form of goods and returned the money or vice versa - provided the money and returned in the form of goods. The latter option is often used in international payments, when received in cash loan settlement is the supply of goods. Credit plays an important role in self-regulation quantity of funds needed to carry out economic activities. Thanks to the credit of the company have at any time such sum of money that is needed for normal operation. The role of credit is important to replenish the working capital requirement in which each enterprise is not stable and varies depending on operating conditions, market, natural, climatic, political, etc. Mortgage one of the most common types of credit.
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