Meaning & use
extended credit
Last updated
Meaning
noununcountablebusinessfinance
A financial arrangement where a customer is allowed more time to pay or is given a higher credit limit.
Grammar: Uncountable; used in business contexts. You can say 'extended credit terms' or 'grant extended credit'.
Patterns
- extended credit terms
- grant extended credit
- offer extended credit
- on extended credit
The supplier agreed to offer extended credit to help the small business through a slow season.
Buying on extended credit can be risky if you cannot pay the balance on time.
The bank granted extended credit to the company after reviewing its financial records.
Common combinations
- extended credit terms
- They negotiated extended credit terms with their main supplier.
- grant extended credit
- The lender decided to grant extended credit to reliable customers.
- offer extended credit
- The store offers extended credit for large purchases.
- on extended credit
- Many small firms operate on extended credit to manage cash flow.
Synonyms and how they differ
- credit line
- A credit line is the maximum amount you can borrow; extended credit focuses on the longer time or higher limit.
- deferred payment
- Deferred payment means you pay later, but it doesn't necessarily involve a credit arrangement.
Opposites
Practice
The company was able to buy more inventory because its supplier offered ______.
Choose one answer.
'Extended credit' is uncountable, so it is used without an article. 'An extended credit' and 'extended credits' are not used in this financial sense.
Make it your own
Write a sentence using “extended credit”, then check it and compare it with the examples above.