Credit is sometimes necessary because businesses often face timing gaps between delivering goods or services and receiving payment. To manage cash flow, pay suppliers, or scale operations, they need short-term liquidity. In the Bitcredit model, this credit is issued against real trade claims (such as electronic bills of exchange), and the final settlement occurs in BTC. This differs from the traditional fractional reserve banking model, where banks create additional money by lending out multiples of their deposits while holding only a fraction in reserve. Instead of expanding the money supply through deposit multiplication, Bitcredit represents specific, time-bound claims that settle in Bitcoin, without creating layered deposit liabilities typical of fractional reserve systems.