Credit

A credit is an accounting entry that either increases a liability or equity account, or decreases an asset or expense account. It is positioned to the right in an accounting entry.

The term also refers to a delayed payment arrangement. For example, a customer is granted $10,000 of credit on 30 day terms, which means that the customer can make purchases of up to $10,000 without having to pay the seller until 30 days have passed.