I'm reading some finance literature and often when it refers to loan it instead uses these term:
- extending credit
- extension of credit
- credit extension
When I google define "credit extension", I get the following answer:
Extension of Credit means the right to defer payment of debt or to incur debt and defer its payment offered or granted primarily for personal, family, or household purposes.
Alright, it's a loan. It's someone borrowing some money and someone else lending that money. Everybody understands what loan, lend and borrow means.
What is the exact meaning of credit extension? What is it's etymology? Both credit and extension have to signify some deep concept that makes using this term preferable to just loan.