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How are bad debts treated in the final accounts?
Companies who extend credit to individuals or other companies set aside an account that is called allowance for doubtful accounts. This account can be based on the amount of sales or the amount of accounts receivables. In determining the amount of the account managers review the previous history to make adjustments. If someone does not pay, after so much time it is written off into this accounts. Sometimes the bad account is sold to another collection agency in attempt to collect.
What is used by a seller of goods to receive payment or to extend credit?
Trade Acceptance
What is a business credit assessment?
A business credit assessment is a method of calculating the creditworthiness of a business. Most lenders will complete a business credit assessment to determine whether or not to extend a loan.
What happens after a entry judgment is granted?
That pretty much depends upon how much the judgment is for. usually, if the judgment amount is small, then nothing happens except that you have a really negative mark on your credit report. If you attempt a purchase a home, the mortgage lender will force you to pay off the judgment before they will extend a mortgage loan to you. The judgment will appear on your credit report for a very long time and will negatively impact your credit score. If the judgment is for a relatively large amount of money, the creditor will most likely seek to garnish your earnings or attach monies in your bank accounts.
If you find a bounced check from 1999 on your credit report would paying it make it show up on your credit report for another 7 years?
No. Paying a derogatory item from 1999 cannot extend the reporting period, which is established by the Fair Credit Reporting Act as 7 years from the month and year you last paid the account in a timely manner.
What are secured and collateral accounts?
Secured accounts are secured by a deposit. The bank would then extend a credit line - usually an amount from 100% to 200% of the deposit. For instance a $500 deposits would generally get you a $500-$1000 credit line. You likely will earn interest on your deposit and be considered for an unsecured line after a certain amount of time.
Do you have to supply ssn to credit card companies?
No, but neither do they HAVE to extend you credit.
Why do companies extend credit?
Companies extend credit to their customers for several reasons. One reason is financial. Companies make money from charging customers interest on their credit lines.
When using your bank card as credit do you gain good credit for your credit score?
No, debit cards have absolutely no relation to credit cards other than that they may be used at locations that accept various credit cards. However, having bad debits are kind of like bounced checks and can affect your rating by credit bureaus and Chexsystems; which banks use to determine whether or not to extend accounts to people.
Is it wise to do credit sales in a business?
Though risk factory is there in credit sales, you are to extend credit against sales to stay in business. However, to safeguard your interest, you are to extend long term credit to customers only assessing detailed whereabouts ,financial standing, credit worthiness etc.
If a credit card is not activated does it still reflect on your credit report?
Yes. If they extend the line of credit to you, and you do not activate it, it will still show up on your credit report.
Does the new credit card law effect companies that extend credit?
Yes. The new laws will affect any credit card company. They do not totally go into effect until Feb. 22, 2010. You can read all about it at the article in the related link as it contains details of both the good and the bad parts of the laws and how they may backfire for responsible users of credit.
If your cosigner's credit is good but yours is not so good will you be denied an apartment?
The company extending the credit is the judge of that. they have guidelines to determine who that extend credit to.
If you own a scooter in California that has a mechanic's lien on it will it affect your credit?
If it shows on your CR, it will effect how lenders extend credit to you.
What are some companies that will extend a line of credit to a small business?
There are several companies that will extend a line of credit to a small business. These include but are not limited to Business Cash Advance, Funding Knight and Loans Pronto.
What is the difference between a credit line and a credit limit?
A credit line is the maximum amount of credit a lender is willing to extend to a borrower, while a credit limit is the maximum amount a borrower can borrow on a credit card or line of credit.
How are bad debts treated in the final accounts?
Companies who extend credit to individuals or other companies set aside an account that is called allowance for doubtful accounts. This account can be based on the amount of sales or the amount of accounts receivables. In determining the amount of the account managers review the previous history to make adjustments. If someone does not pay, after so much time it is written off into this accounts. Sometimes the bad account is sold to another collection agency in attempt to collect.
