creditare

Creditare is a term used in Romanian accounting and finance with two main meanings. In accounting, creditare denotes recording a credit entry in a ledger account as part of a double-entry system. In this system, every transaction affects at least two accounts: a debit and a credit. A credit entry typically increases liabilities, equity, and revenue accounts, and decreases asset and expense accounts. For example, recording a sale on credit involves debiting Accounts Receivable and crediting Revenue. When a company borrows cash, it debits Cash and credits Loans Payable, increasing the liability side.

Creditare is also used more generally to mean providing credit to a customer or granting a loan. In this sense, to credit a customer means to extend a line of credit or to recognize an amount receivable from the customer.

In banking and finance the term can refer to the approval or extension of a credit facility, such as a loan or line of credit, and to the ongoing management of such facilities, including terms, interest rates, and repayment schedules. The concept of credit risk and creditworthiness is closely linked to creditare, particularly for lenders.

See also: debitare, credit (accounting).