Definition
Credit is the ability to borrow money or obtain goods and services with deferred payment. Founders reach for it when a vague conversation needs a shared, specific meaning. Name it clearly, then let the next decision — a hire, a price, a test, or a pass — follow from that meaning.
In the room
How the word shows up in a real conversation.
Two cofounders disagree until they define Credit. Once they agree it means “Ability to borrow money or obtain goods and services with deferred payment”, the argument becomes a decision.
Common mistake
Using Credit as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.
See also
Credit history
Record of a person's or company's past borrowing and repayment behavior.
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Credit risk
Risk that a borrower will default on their debt obligations.
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Credit score
Numerical representation of creditworthiness based on credit history.
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Counterparty risk
Risk that the other party in a financial transaction will default.
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