December 20, 2019

What is re-credit? When does it occur?

Issues related to additional funding is quite clear. The problem of the meaning of terms appears with the so-called re-credit. To clarify this concept, one needs to consider the situation of broadly defined debt, resulting from an excess of liabilities that we are unable to pay. Details can be found in the article. We invite you to read. Definition of re-credit Conversion is a quite dangerous phenomenon. It occurs when the sum of liabilities in a given bank exceeds a certain level of the borrower’s or borrower’s earnings. The point is that the cost of the commitment, i.e. capital plus interest, interest rate, etc., is already high enough to absorb…