Credit Netting

Business, Legal & Accounting Glossary

Definition: Credit Netting


Credit Netting


Full Definition of Credit Netting


A process used by financial institutions which eliminates the need to do a credit check on every financial transaction. In some situations, such as stock market transactions, it is important for transactions to be completed in a timely manner. Most of these transactions would typically require a credit check, to make sure that the party will be able to pay the contracted amount. However, in some situations the financial institutions will agree to the system of credit netting, where all transactions are combined into one transaction, eliminating the credit check on every small transaction.


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, from PayrollHeaven.com website: https://payrollheaven.com/define/credit-netting/

Definition Sources


Definitions for Credit Netting are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.