Category: Banking / Financing

Unsecured Credit

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

Read More

Factoring: What, When, and Where

See Also: Another Way To Look At Factoring Accounting for Factored Receivables Journal Entries 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 What is Factoring Receivables What, Where, and When To Use Factoring In order to

Read More

The Fed Beige Book

See Also: Economic Indicators Balance of Payments Supply and Demand Elasticity Stagflation What are the Twin Deficits? Federal Reserve Beige Book The Fed beige book is more formally known as the “Summary of Commentary on Current Economic Conditions.” The beige book describes economic conditions in each of the twelve Federal Reserve Bank districts. The beige

Read More

Transfer Risk

See Also: Electronic Funds Transfer (EFT) Transfer Pricing Transaction Exposure Hedging Risk Accounting Controls Transfer Risk Definition Transfer risk is defined as the risk associated with currency conversion from the money of one nation to another. It is a large factor in international business and currency trading alike. Transfer risk may be associated with changes in

Read More

Trade Finance

See Also: Trade Credit Trade Account Exchange Traded Funds Currency Exchange Rates Currency Swap Trade Finance Definition Trade Finance is the movement of assets, transactions, or investments overseas into other markets. To ensure the safety of a purchaser or seller trade finance, banks often provide a needed service to make the transactions as meaningful and

Read More

Term Loan

See Also: What is a Term Sheet? Term Deposit Terms of Sale Below the Line Lease Term Term Loan Definition A term loan, defined as a loan which exist for a specific, predetermined amount of time before it is called and requires payment, is a staple in the loan industry. A term loan contract defines

Read More

Term Deposit

See Also: Loan Term 5 C’s of Credit (5 C’s of Banking) How to manage your banking relationship Bank Charge Financial Instruments Term Deposit Definition A term deposit, also referred to as a time deposit or a certificate of deposit (CD), is an amount of money invested into a financial institution for a set amount

Read More

Sinking Fund

See Also: How important is personal credit in negotiating a commercial loan? Loan Agreement Payment Terms Down Payment Self-Liquidating Loans Sinking Fund Definition The sinking fund definition is an accumulation of assets set aside to repay a loan when it becomes due. Use the accumulated amount to pay off the debt early to reduce the amount

Read More

Subordinated Debt

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

Read More

Self-Liquidating Loans

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

Read More

Secured Claim

See Also: Pledged Collateral Collateralized Debt Obligations Debt Ratio Analysis Debt Service Coverage Ratio (DSCR) Convertible Debt Instrument Asset Based Financing Secured Claim Definition The secured claim definition is debt backed by collateral. It can refer to loans, mortgages, bonds, and other financial debt instruments. As stipulated in the debt contract, the debtor backs the

Read More
WIKI CFO® - Browse hundreds of articles
Skip to content