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.
The expense stop means a fixed operating expense of the landlord, beyond which the tenant has a liability and responsibility to make the payment. Hence, the landlord is responsible for paying all operational expenditure below this expense stop threshold, while the tenant holds responsibility for paying anything above this figure.
Expense stop may be expressed through any amount or figure that is agreed-upon, and mostly shown through the cost per square foot/square meter. This helps in safeguarding the owner of the property from the rise in costs throughout the duration of the rental agreement or the lease. Sometimes owners agree to cover operating costs for the loan’s first year, or the base year amount, and this fixes the expense stop accordingly.
