A credit circle is created when members of a common group, typically a
trade association
A trade association, also known as an industry trade group, business association, sector association or industry body, is an organization founded and funded by businesses that operate in a specific Industry (economics), industry. An industry tra ...
or
federation
A federation (also known as a federal state) is a political entity characterized by a union of partially self-governing provinces, states, or other regions under a central federal government (federalism). In a federation, the self-govern ...
, come together to share information on credit related matters of their customers, such as late payers or bad debtors. Credit circles traditionally would meet together on a fairly regular basis, although some now share information online to allow each member to carry out a real time credit check on any new customers.
See also
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Credit Bureau
A credit bureau is a data collection agency that gathers account information from various creditors and provides that information to a consumer reporting agency in the United States, a credit reference agency in the United Kingdom, a credit repor ...
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Credit risk
A credit risk is risk of default on a debt that may arise from a borrower failing to make required payments. In the first resort, the risk is that of the lender and includes lost principal and interest, disruption to cash flows, and increased ...
Credit
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