Credit (finance)

Credit (from Latin credere, "to believe") is the trust which allows one party to provide money or resources to another party where that second party does not reimburse the first party immediately
(thereby generating a debt), but instead arranges either to repay or return those resources (or other materials of equal value) at a later date.[1] The resources provided may be financial (e.g. granting a loan), or they may consist of goods or services (e.g. consumer credit). Credit encompasses any form of deferred payment.[2] Credit is extended by a creditor, also known as a lender, to a debtor, also known as a borrower.
Credit does not necessarily require money. The credit concept can be applied in barter economies as well, based on the direct exchange of goods and services.[3] However, in modern societies, credit is usually denominated by a unit of account. Unlike money, credit itself cannot act as a unit of account.