This chapter discusses the interplay between credit and security. In a commercial context, credit refers to a person's financial status or reputation for solvency or a sum of money owed from the bank's records. Additionally, credit facilities play a key role in financing the acquisition of goods and services or supporting general business activity. Credit is supplied whenever the payment of a debt is contractually deferred through either loan credit and sales credit or fixed sum and revolving credit. The chapter then provides an overview of the variety of arrangements developed to fulfil the creditor's desire for either real or personal security.
