For commercial banks and large financial firms, „credit agreements” are generally not categorized, although credit portfolios are often roughly divided into „personal” and „commercial” credits, while the „commercial” category is then divided into „industrial” and „commercial” credits. „Industrial” credits are those that depend on the cash flow and solvency of the company and the widgets or services it sells. „Commercial real estate” loans are those that repay loans, but this depends on the rental income paid by tenants who rent land, usually for long periods. There are more detailed categorizations of credit portfolios, but these are always variations around the major themes. Before entering into a commercial credit agreement, the borrower first makes statements about its nature, solvency, cash flow and any collateral that it may mortgage as collateral for a loan. These presentations are taken into account and the lender then determines the conditions (conditions), if necessary, he is ready to advance the money. The forms of credit agreements vary enormously from one sector to another, from one country to another, but, characteristically, a professionally crafted commercial credit agreement has the following conditions: credit agreements are usually written, but there is no legal reason why a credit agreement should not be a purely oral agreement (although oral agreements are more difficult to implement). A credit agreement is a contract between a borrower and a lender that regulates the mutual commitments of each party. There are many types of credit agreements, including „facilities”, „revolvers”, „fixed-term loans”, „working capital loans”. Credit agreements are documented by a compilation of the various mutual commitments of the interested parties. Credit agreements, like any agreement, reflect an „offer”, „acceptance of the offer”, a „counterparty” and can only include „legal” situations (a credit agreement with the sale of heroin drugs is not „legal”). Credit agreements are documented through their declarations of commitment, agreements that reflect the agreements concluded between the parties, a claim voucher and a guarantee contract (for example.
B a mortgage or personal guarantee). The credit agreements offered by regulated banks are different from those offered by financial companies by giving banks a „bank charter” that is granted as a privilege and that contracts „public trust”. Within these two categories, however, there are different subdivisions, such as interest loans and hot air balloon loans….