See Also: Can Factoring Be Better Than A Bank Loan? Loan Term Prepare an Investor Package Good Budgeting Processes What the Banker Wants You to Know Does Your Management Team Understand the Financials? Preparing a Loan Package Knowing the process of preparing a loan package can be one of the most resourceful tools for business
See Also: Collateralized Debt Obligations Convertible Debt Instrument Debt Ratio Analysis Debt Service Coverage Ratio (DSCR) Overhead Rate Imprest Account Outstanding Debt Definition Outstanding debt, defined as the total principal as well as interest amount of a debt that has yet to be paid, is of core importance for any company which has used debt
Other People’s Money (OPM) In finance, other people’s money, or OPM, is a slang term that refers to financial leverage. Other people’s money refers to borrowed capital that is used to increase the potential returns as well as the risks of an investment. OPM can be used by individuals or by corporations. Using other people’s
See Also: Valuation Methods Net Present Value Method Internal Rate of Return Method NPV vs IRR Capitalization Adjusted Present Value (APV) Method of Valuation is the net present value of a project if financed solely by equity (present value of un-leveraged cash flows) plus the present value of all the benefits of financing. Use this
See Also: Recapitalizing Your Company Using Mezzanine Financing Angel Investor Venture Capitalist Why Venture Capital What is a Term Sheet What is Mezzanine Debt Financing (Mezzanine Loans)? Mezzanine debt financing is a subordinated and unsecured loan which typically features a warrant. This type of debt has higher interest rates because of its subordinated and unsecured
See Also: Current Liabilities Net 30 Credit Terms Accounts Payable Notes Receivable Long Term Debt Financial Ratios Notes Payable Definition Notes payable is a written promise to pay a certain amount at some future date. The account appears on the balance sheet when the company borrows money and signs a note or contract stating they
See Also: Factoring Another Way To Look At Factoring Accounting for Factored Receivables Can Factoring Be Better Than a Bank Loan? Factoring is Not for My Company History of Factoring How Factoring Can Make or Save Money The What, When, and Where about Factoring Journal Entries (JEs) Journal Entries for Factoring Receivables The following scenario
Investment Banks Investment banks are banks that offer expert financial services. The services include the following: Underwriting initial public offerings Issuing securities to raise capital Evaluating financing alternatives Handling mergers and acquisitions Other activities related to finances and securities They also serve as financial intermediaries between companies issuing securities and the investing public that purchases
See Also: How to Manage Inventory Inventory Turnover Ratio Analysis Days Inventory Outstanding Analysis Inventory to Working Capital Analysis Freight on Board (FOB) Inventory Cost Definition Defined as the total cost that a company experiences while holding inventory, inventory cost is often one of the most substantial factors in the success of a business. Inventory cost
See Also: Interest Expense Formula What is Compound Interest Effective Rate of Interest Calculation Nominal Interest Rate When is Interest Rate Not as Important in Selecting a Loan? Capitalized Interest Interest Expense Definition Interest expense, defined as a non-operating expense on the income statement, occurs anywhere money is borrowed. Consider this part of a company’s
See Also: Working Capital Angel Investor Venture Capitalists Why Venture Capital Mezzanine Debt Financing The Dilemma of Financing a Startup Company I had a meeting the other day with a prospect named Chris. Chris owns a distribution company he started fifteen months ago from his home. He has grown his company to annual revenues in
See Also: Cash Flow Projections Discounted Cash Flow Analysis Cash Cycle Steps to Track Money In and Out of a Company Free Cash Flow Analysis Definition Free cash flow analysis is the amount of cash that a company can put aside after it has paid all of its expenses at the end of an accounting
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