Category: Banking / Financing

Twin Deficits

See Also: Economic Indicators Supply and Demand Elasticity The Feds Beige Book Inflation Stagflation Twin Deficits Definition In economics, a twin deficit occurs when a nation has both a current account deficit and a fiscal deficit. You can also call twin deficits a double deficit. Current Account Deficit Definition The current account is an account

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Interest Rate in Selecting a Loan

See Also: What is Compound Interest Effective Rate of Interest Calculation Interest Expense Nominal Interest Rate Interest Rate Swaps Interest Rate in Selecting a Loan Why is the interest rate in selecting a loan not the best indicator? First off, the interest rate is always important. It determines the size of your loan payments. There

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What is Inflation?

See Also: Economic Indicators Consumer Price Index Supply and Demand Elasticity The Feds Beige Book Z-Score Model What is Inflation? What is inflation and what does it measure? Inflation measures the rate at which prices increase for consumer goods and services. Inflation also measures the rate at which a currency’s purchasing power declines. If consumer

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Zero Coupon Bonds

See Also: What is a Bond Non-Investment Grade Bonds Covenant Definition of a Bond Contract Yield to Maturity of a Bond Financial Instruments Zero Coupon Bonds Zero coupon bonds are a debt security that does not have periodic interest payments. The bond, issued at a deep discount from par value, compensates for the lack of

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What Is Dilution?

What is Dilution? Dilution is any portion, regardless of why, of your receivables that you did not collect. This is important as the amount available from your line of credit with the bank is based on your outstanding accounts receivable balance. The bank wants to know the extent to which your receivables are likely to

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Yield Curves

See Also: What is a Bond? Yield to Maturity Coupon Rate Bond Par Value of a Bond Zero Coupon Bonds Yield Curves Definition In the field of finance, yield curves represent the relationship between the yields on bonds of similar credit quality that have differing maturity dates. Many commonly use the yield curve plotting U.S.

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Warrants

See Also: Common Stock Definition Purchase Option Call Option Put Option Synthetic Stock Warrants Definition The warrants definition is the right to purchase shares or bonds at a fixed price before there is an issuance in the public marketplace. In this sense, a warrant is like a call option. But there are several key differences.

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Venture Capitalists Definition

See Also: Why Venture Capital The Dilemma of Financing a Start-up Company Angel Investor What is a Term Sheet Working Capital Venture Capitalists Definition A venture capitalist is an investor who invests in risky startup businesses. The venture capital investor provides funding to an entrepreneur who may not have access to substantial bank loans or

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Why Venture Capital?

See Also: The Dilemma of Financing a Start-up Company Angel Investor Mezzanine Debt Financing What is a Term Sheet Working Capital Why Venture Capital? Why venture capital versus other forms of equity? For one, VC partners tend to be experienced entrepreneurs themselves who have taken a startup from inception to an exit through an IPO

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Choosing a Bank

See Also: What are the 7 Cs of banking Categories of Banks Finding The Right Lender How Important is Personal Credit When Negotiating a Commercial Loan? Bank Reconciliation Choosing a Bank: Which Bank to Choose? I was involved in a speaking engagement recently with my friend, a banker named Larry from Community Bank located here

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Venture Capital

See Also: Every Business Has A Funding Source, Few Have A Lender Don’t Tell Your Lender Everything Due Diligence on Lenders The Relationship With Your Lender What Does A Lender Want To Know? Venture Capital Definition The Venture Capital definition is a funding source for start-up businesses or turnaround businesses. There is typically more risk

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Vendor Finance

See Also: Time Saving Tip for Filing Vendor Invoices The Dilemma of Financing a Start Up Company Mezzanine Debt Financing Commercial Agents Vendor Finance Definition The vendor finance definition is the receiving of financing for an asset from the provider of the asset. Vendor finance is a common way to receive an asset before having the

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