Definition of 'Underwriting '

1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies.

Investopedia explains 'Underwriting'

The word "underwriter" is said to have come from the practice of having each risk-taker write his or her name under the total amount of risk that he or she was willing to accept at a specified premium. In a way, this is still true today, as new issues are usually brought to market by an underwriting syndicate in which each firm takes the responsibility (and risk) of selling its specific allotment. 2) A credit card is a payment card issued to users as a system of payment. It allows the cardholder to pay for goods and services based on the holder's [1] promise to pay for them. The issuer of the card creates a revolving account and grants a line of credit to the consumer (or the user) from which the user can borrow money for payment to a merchant or as a cash advance to the user. A credit card is different from a charge card: a charge card requires the [2] balance to be paid in full each month. In contrast, credit cards allow the consumers a continuing balance of debt, subject to interest being charged. A credit card also differs from a cash card, which can be used like currency by the owner of the card. A credit card differs from a charge card also in that a credit card typically involves a third-party entity that pays the seller and is reimbursed by the buyer, whereas a charge card simply defers payment by the buyer until a later date. A credit card is a card which allows people to buy items without cash. When

they buy something, a sales clerk uses it to charge the money needed to their bank account, so the person will pay later. They are buying it on credit, which is the trust that they will pay it back later. If a person does not pay within a limit (usually a month) they will have to pay extra money, called interest. 3)

Definition of 'Overdraft'
An extension of credit from a lending institution when an account reaches zero. An overdraft allows the individual to continue withdrawing money even if the account has no funds in it. Basically the bank allows people to borrow a set amount of money.

Investopedia explains 'Overdraft'

If you have an overdraft account, your bank will cover checks which would otherwise bounce. As with any loan, you pay interest on the outstanding balance of an overdraft loan. Often the interest on the loan is lower than credit cards. It means you spent more than what you had in your account Some banks pay it off even if you don't have enough and as long as you cover the overdrafted amount of money in the same buisness day it is no problem but if not you will be charged with fees diffrent banks charge different amounts.

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Definition of 'Retail Credit Facility'

A financing method which provides loan services to retail consumers for goods and services. Retail credit facilities lend funds to consumers wishing to purchase high ticket items but are short on capital. Thus, retail credit facilities may enable a greater number of consumers access to a retailer's goods. 5) In finance, a loan is a debt evidenced by a note which specifies, among other things, the principal amount, interest rate, and date of repayment. A loan entails the reallocation of the subject asset(s) for a period of time, between the lender and the borrower. In a loan, the borrower initially receives or borrows an amount of money, called the principal, from the lender, and is obligated to pay back orrepay an equal amount of money to the lender at a later time. Typically, the money is paid back in regular installments, or partial repayments; in an annuity, each installment is the same amount. The loan is generally provided at a cost, referred to as interest on the debt, which provides an incentive for the lender to engage in the loan. In a legal loan, each of these obligations and restrictions is enforced by contract, which can also place the borrower under additional restrictions known as loan covenants. Although this article focuses on monetary loans, in practice any material object might be lent. Acting as a provider of loans is one of the principal tasks for financial institutions. For other institutions, issuing of debt contracts such asbonds is a typical source of funding.

Investopedia explains 'Retail Credit Facility'

Retail credit facilities can take the form of point of sale finance options in retail outlets. For example a $10,000 motorcycle might be a lot for a consumer to pay up front. Retail credit facilities will loan the $10,000 to the consumer, who will then pay it back with interest in monthly instalments over several years. Some offer low or even no payments over an initial time period, but then charge above average interest. Retail credit facilities give the option of consuming now or consuming in the future. Higher interest rates may be acceptable to some consumers, depending on the consumers' unique consumption utilities. The risk of default is a factor that determines the interest rate that retail credit facilities charge.