See Also: Debits and Credits Credit Letter Direct Tax Credit Memorandum (memo) Unsecured Credit Definition Define unsecured credit as credit not collateralized by an asset. It is a common form of credit used for business. Furthermore, an unsecured credit line comes in many forms, including the following: Credit card Trade credit Lines of credit Mezzanine debt
Sukuk Definition A Sukuk is the islamic world’s version of a bond. It is also referred to as an islamic bond. Because Islamic people do not believe in charging or paying interest, they have been forced to maneuver their way around interest by renting certain assets or by taking ownership in a project. Sukuk Meaning
See Also: Mezzanine Debt Financing (Mezzanine Loans) Collateralized Debt Obligations Outstanding Debt Self-Liquidating Loans Loan Term What Your Banker Wants You to Know Alternative Forms of Financing Subordinated Debt Definition Subordinated debt is a security which has a residual claim upon a company’s assets, after the senior debt holders have had their claims satisfied. Meaning
Separation of Duties Definition Some circles refer to separation of duties as segregation of duties. It refers to a concept that leads to greater internal control within a company. The accounting separation of duties definition is a theory that the job of an employee should provide a reasonable evaluation for the job of another employee. In
See Also: Loan Agreement Collateralized Debt Obligations When is an interest rate not as important in selecting a loan? Debt Ratio Analysis Debt Service Coverage Ratio (DSCR) What Your Banker Wants You To Know 7 C’s of Banking Budgeting 101: Creating Successful Budgets Self-Liquidating Loans The term “self-liquidating loans” is banker slang. It refers to
Special Tax Bond Definition A Special Tax Bond is a bond, usually issued by a government entity. It uses a particular tax to pay off creditors. Special Tax Bond Meaning Local governments like cities or states normally use special tax bonds. A government entity will use a special tax bond for city or state management.
Sole Proprietorship Definition The sole proprietorship definition is a private business owned and operated by one individual. Furthermore, a proprietorship is unincorporated and is not a legal entity separate from its owner. As a result, the owner earns all of the profits and incurs all of the losses from business operations. Therefore, the sole proprietor
See Also: External Sources of Cash Other People’s Money Due Diligence on Lenders Don’t Tell Your Lender Everything Finding The Right Lender Is It Time To Find A New Lender? I was meeting with a business adviser last week named John and he asked me “When do you think it is in the best interest
See Also: S Corporation C Corporation Limited Liability Company (LLC) S Corporation vs C Corporation Although these two entities are very similar, there has always been a debate between an S corporation vs C corporation. The S corporation vs C corporation debate has been ongoing for a while. The following are some major differences that
See Also: Return on Asset Analysis Return on Equity Analysis Financial Ratios Return on Invested Capital (ROIC) Current Ratio Analysis Return on Capital Employed (ROCE) Definition The return on capital employed ratio is used as a measurement between earnings, and the amount invested into a project or company. Return on Capital Employed (ROCE) Meaning The
See Also: Earnings per Share (EPS) Price to Book Value Ratio Price to Sales Ratio Return on Equity Analysis Preferred Stocks (Preferred Share) Action Plan Price Earnings Ratio Analysis Definition Price earnings ratio (P/E ratio), defined easily as an indicator of how much investors pay for a share compared to the earnings a company generates
See Also: Collateralized Debt Obligations Secured Claim Subordinated Debt Mezzanine Debt Financing (Mezzanine Loans) Asset Based Financing Passthrough Securities Definition A passthrough security is a debt obligation that represents the cash flows towards a certain asset or liability. There is often an intermediary between the cash flows and the investor who provides a lump sum
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