1
00:00:00.000 --> 00:00:04.050
Johny Fernandez: What are
credits and debits?

2
00:00:04.050 --> 00:00:06.510
Sean Murray: What are credits
and debits? So credits and

3
00:00:06.567 --> 00:00:10.057
debits, if we're looking you
know if we're talking about them

4
00:00:10.114 --> 00:00:13.833
in the world of accounting, they
have very specific meanings. But

5
00:00:13.890 --> 00:00:17.266
I feel like that question was
probably asked by someone who

6
00:00:17.323 --> 00:00:20.813
was talking again about this
industry, so what are debits and

7
00:00:20.871 --> 00:00:24.361
credits when it comes to the
small business finance industry?

8
00:00:24.418 --> 00:00:27.851
We're typically talking about
credits that are coming into a

9
00:00:27.908 --> 00:00:31.627
bank account and debits that are
coming debits is money going out

10
00:00:31.684 --> 00:00:35.403
so credits are are the deposits.
That could be you know, somebody

11
00:00:35.460 --> 00:00:38.893
depositing a check, putting in
cash, it could be an incoming

12
00:00:38.950 --> 00:00:42.269
wire transfer, credits is
basically any money coming in to

13
00:00:42.326 --> 00:00:45.702
a bank account, and debits are
any money that's leaving the

14
00:00:45.759 --> 00:00:49.363
bank account. You'll often hear
the phrase debiting a merchant,

15
00:00:49.421 --> 00:00:52.796
and what debiting a merchant
means that the funding company

16
00:00:52.854 --> 00:00:55.772
will actually initiate a debit
from their side that

17
00:00:55.829 --> 00:00:59.147
automatically pulls the funds
they're entitled to from the

18
00:00:59.204 --> 00:01:02.580
merchant's account. So nothing
is required on behalf of the

19
00:01:02.637 --> 00:01:06.185
merchant themselves. The funder
can simply debit the money out

20
00:01:06.242 --> 00:01:09.560
of the account and pull it all
on their own. So credits is

21
00:01:09.617 --> 00:01:13.050
money in debits is money coming
out when you've talked about

22
00:01:13.108 --> 00:01:16.254
debiting a merchant you're
talking about the ability to

23
00:01:16.312 --> 00:01:19.230
pull the money from the merchant
out automatically.