Understanding Collateral and Connection in Financial Transactions

Security provided by the debtor in addition to capital

Capital is always required, but collateral may or may not be required

Good connections can help a debtor in obtaining credit

<p>Efficient collection of accounts receivables</p> Signup and view all the answers

<p>To facilitate efficient collection of accounts receivables</p> Signup and view all the answers

<p>By facilitating the movement of goods and services faster and in greater quantities</p> Signup and view all the answers

<p>Credit provides vital funds necessary for the start-up of any business</p> Signup and view all the answers

<p>Credit enables individuals without material property to acquire goods and services necessary to earn or save</p> Signup and view all the answers

<p>By providing manufacturers with the initiative to improve the quality of their products or service</p> Signup and view all the answers

<p>Credit increases the total amount of money in circulation, thereby increasing purchasing power</p> Signup and view all the answers