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What is a Credit?


By:Rajendra Narayan Rai SuhawalDate:2018-03-21
If A gives credit to B, This happens.
A does some work, this work is money and must have some market value. When B takes it in exchange of cash then B lends it from A of behalf of cash which we call as document of lending. This Bank note carries a Guarantee that the lender (or the buyer) will return the bearer of the bank note (the seller), his work in future and take his bank note back. So we can say that a bank note is just a note of promise guaranteed by the Government. This clearly means whatever you buy, is actually a credit, not just the credit that you get from your bank. If you will not return this credit and earn the cash back, you may become poorer everyday, contributing to the poverty of the nation as well, this happens because consumerism a habit that gets developed over time and is very hard to leave . Government guarantees your promise because it considers its people as the nation builder (In a nationalist government) or a Society maker (In a socialist government). Through business and mutual exchange of values it is aimed to make a nation.
Now let us see how bank provides credit. Obviously bank gives credit on some security. Now here the bank considers an individual as the one who should take guarantee. For example, a businessman. This means this individual must act somewhere similar to the government. It must have administration, policy executors, and decision makers within the company, it must also make appropriate policies. This clearly means that even companies work like a small government just with a different aim. Their aim is more capitalist and less political.
So it clearly means that a company must also do business within it's workers just similar to government. And doing so it should always be aimed at increasing its workforce in order to increase its market. Only the firm honesty and ethics can build such environment.