Operating credit

The operating credits are loans short term (a few months maximum), usually granted by banks or suppliers to companies to finance so-called current assets as operating values (stocks, work in progress, customer receivables. ..) not covered by working capital .

Main forms

  • short-term loan to finance a given operation.
  • campaign credit (loan or credit opening variant for a seasonal requirement)
  • commercial discounting of drafts drawn on customers (sometimes replaced by a “blank credit” financing overall the receivables).
  • credit opening valid for a given period, and used by debiting the current account , alternating with a credit position, for example at end-of-month periods .
  • easy same thing, but limited to a few days, sometimes in excess of the opening credit.
  • bank guarantee eg: export guarantee, tax bond …

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