Extended credit is a form of financing that allows a customer to purchase goods or services and pay for them over time. It is often referred to as a loan, and it is typically offered by banks, credit unions, and other financial institutions. The term 'extended credit' is used to describe the process of providing a customer with a loan that can be paid back in installments over a period of time. This type of financing is beneficial for customers who may not have the funds available to make a large purchase upfront.