extend credit

USAGE SUMMARY

The phrase "extend credit" is correct and usable in written English.
It is typically used in financial contexts to refer to the act of providing a loan or allowing someone to purchase goods or services with the promise of payment later. Example: "The bank decided to extend credit to the small business to help them manage their cash flow."

✓ Grammatically correct

News & Media

Academia

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

60 human-written examples

Mobile-phone firms will extend credit.

The Economist

Banks, however, remained reluctant to extend credit.

The Economist

At present he has little choice but to extend credit.

The Economist

And why do banks extend credit to them?

The New York Times

The supplier agreed to extend credit for the rest.

The New York Times

GSA may extend credit after the delinquency has been resolved.

Cornell University

(ii) Consider such information in determining whether to extend credit.

Cornell University

But however often they vote, democracies cannot make foreign lenders extend credit.

The Economist

The banks and investment houses didn't just extend credit to Long-Term Capital.

The New Yorker

"Zombie banks will not extend credit to borrowers that need it.

The New York Times

Businesses do not extend credit to customers, because they do not expect to get paid.

The Economist

Expert writing Tips

Best practice

When writing about financial matters, use "extend credit" to clearly convey the action of providing a loan or financial accommodation, ensuring clarity for your audience.

Common error

Avoid using the generic term "lend" when you specifically mean "extend credit". "Extend credit" implies a formal agreement and expectation of repayment, whereas "lend" can refer to informal, non-commercial situations. Using "extend credit" provides a more precise and professional tone in financial writing.

Linguistic Context

The phrase "extend credit" functions as a verb phrase that describes the action of providing a loan or allowing a purchase with deferred payment. As Ludwig AI indicates, it is commonly used in financial contexts.

Expression frequency: Very common

Frequent in

News & Media

48%

Academia

20%

Formal & Business

15%

Less common in

Encyclopedias

3%

Wiki

3%

Science

8%

Ludwig's WRAP-UP

In summary, the phrase "extend credit" is a grammatically correct and frequently used verb phrase that signifies the act of providing a loan or deferred payment option. As confirmed by Ludwig AI, it is primarily used in financial contexts and maintains a neutral to professional register. Its function is to inform or explain financial transactions. Common alternatives include "grant credit", "offer credit", and "provide credit". It's important to use this phrase precisely to avoid confusion with more general terms like "lend". The phrase is predominantly found in News & Media, Academic, and Formal & Business contexts.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

grant credit

Focuses on the act of formally approving and providing credit.

offer credit

Emphasizes the act of making credit available to someone.

provide credit

Highlights the act of supplying credit or financial resources.

advance credit

Suggests providing credit in anticipation of future repayment.

issue credit

Focuses on the formal act of creating and distributing credit instruments.

make credit available

Highlights the action of enabling access to credit.

offer financing

Broadens the scope to include various forms of financial support.

provide financing

Similar to "offer financing" but emphasizes the act of supplying the funds.

grant a loan

Refers to providing a specific sum of money with repayment terms.

offer a line of credit

Refers to giving access to a pre-approved amount of credit that can be used as needed.

FAQs

How is "extend credit" used in a sentence?

The phrase "extend credit" is typically used to describe the act of providing a loan or allowing someone to purchase goods or services with a promise of payment later. For example, "The bank decided to extend credit to the small business to help them manage their cash flow."

What are some alternatives to "extend credit"?

You can use alternatives like "grant credit", "offer credit", or "provide credit" depending on the specific nuance you want to convey.

What's the difference between "extend credit" and "lend money"?

"Extend credit" implies a formal agreement and expectation of repayment, typically in a commercial context. "Lend money", on the other hand, is a more general term that can apply to both formal and informal situations. While similar, "extend credit" is more precise when discussing financial transactions.

When is it appropriate to use "extend credit" instead of "provide funds"?

Use "extend credit" when you are specifically referring to the provision of credit facilities, such as loans or lines of credit. "Provide funds" is a broader term that can encompass various forms of financial support, including grants or investments, not just credit-based arrangements.