Credit gives the word to pay either by repaying it or returning those resources later. In other words, this credit is the method of making the reciprocity formal, legally enforceable, and of course, extensible to a vast group of people who are not related.
However, the resources provided may be financial or have goods or services, like consumer credit. The credit covers any form of deferred payment. Credit generally gets extended by the creditor, the debtor or lender, and sometimes the borrower.
Most people think there is only one type of check in the industry. On the contrary, there are many forms of the same, each having its own purpose. Similarly a certified check is:
I. A check that is guaranteed to reimburse the said amount. These checks are often certified by the bank, meaning the money on it will be kept aside beforehand. With such checks, there is a much less chance of non-payment due to insufficient funds.
II. A check that is the safest way to deal with a significant transaction. Many times, a buyer will just sign a check for the said amount, but until it reaches the bank, you will never know if you will get paid. However, since these checks are assured by the bank, you have no such issue.
There are many reasons why every significant transaction should be concluded with a certified check. Here are a few of those:
1. Guarantee of payment:
With a certified check, you will be assured of getting the money. There will never be a case of non-payment due to insufficient funds.
2. Easy savings:
In most cases, with a certified check, the bank will withhold the said amount for the holder. This means the holder does not have to worry about spending the money and can use it when and as required.
3. Quicker payments:
Since these checks are already made out, they make for easier reimbursement and quicker payment to the said party.
