Back-to-back credit, also known as countervailing credit, is a method used to conceal the identity of the seller from the buyer in a credit arrangement. This finance technique involves a finance house acting as an intermediary between the foreign seller and the buyer.
Finance involves the practice of managing and manipulating money, the capital involved in a project, and obtaining loans for specific purposes.
A finance house is an organization, often owned by commercial banks, that provides finance for hire-purchase or leasing agreements. These institutions play a pivotal role in consumer finance, enabling consumers to purchase expensive items through structured agreements while earning profits from the interest rate differential.
