An accounting entry that represents an increase in assets or a decrease in liabilities or equity.
Credit is a financial arrangement that allows businesses and individuals to borrow money or access goods and services with the promise of repayment at a later date. It involves extending trust to the borrower based on their creditworthiness and financial stability. Credit can come in various forms, such as loans, credit cards, lines of credit, or trade credit. It enables small business owners to manage cash flow, make necessary purchases, and invest in growth opportunities. Building and maintaining a positive credit history is crucial for accessing favorable borrowing terms, establishing relationships with suppliers, and demonstrating financial responsibility.