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Tag: bank

Prime Lending Rate

See Also: Interest Expense Interest Rate Swaps LIBOR Federal Funds Rate Market Rate Prime Lending Rate Definition Prime rate, or prime lending rate, is the interest rate commercial banks charge on loans to preferred borrowers. The prime interest rate is lower than the interest rates charged to less creditworthy borrowers. Commercial banks can charge lower

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Negative Equity

See Also: Working Capital From Real Estate Asset Based Financing Loan Agreement Pledged Collateral Collateralized Debt Obligations Negative Equity Definition The negative equity definition is when the the value of a loan is more than the value of the assets used to collateralize the loan. In addition, negative equity loans usually occurs because the value of

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Monetize

See Also: Current Assets External Sources of Cash Fixed Assets Cash is in Your Business Track Money In and Out of a Company Monetize Definition Monetizing is the act of converting an item into cash usually a bank note or some other certificate that is readily convertible at a bank into cash. However, there are

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London Interbank Offered Rate (Libor) Controversy

London Interbank Offered Rate (Libor) Controversy (June 2008) Presently, there are two issues regarding the London Interbank Offered Rate (LIBOR). First, dollar Libor quotes are considered too high compared to the federal funds rate. Second, elevated Libor quotes are considered too low compared to other market-based interest rates. British Bankers’ Association (BBA) Reaction (bba.org.uk) The

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Line of Credit (Bank Line)

See Also: 5 Cs of Credit What are the 7 Cs of banking Credit Rating Agencies How Important is Personal Credit in Negotiating a Commercial Loan? Improve Your Credit Score Line of Credit (Bank Line) A line of credit (bank line) is a type of loan agreement between a bank and a borrower. Basically, a

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Libor versus Prime Rate

See Also: LIBOR Prime Lending Rate Interest Expense Interest Rate Swaps Federal Funds Rate Libor versus Prime Rate The London Interbank Offered Rate (Libor) and the US Prime Rate are both benchmark interest rates. Both rates are used as reference rates for various lending and borrowing transactions. (For current and historical rates, see the links

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LIBOR (London Interbank Offered Rate)

See Also: Interest Rate Swaps Prime Lending Rate Libor versus Prime Rate Federal Funds Rate LIBOR Definition The LIBOR definition is a benchmark interest rate derived from the rates at which banks are able to borrow funds from one another in the London inter-bank market, is the foundation of all lending rates. Furthermore, this term

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Is It Time To Find A New Bank?

See Also: Bankers’ Language is Financial Jargon Categories of Banks Finding the Right Lender Funding Source Versus Lender How to Manage Your Banking Relationship Interest Rate Is It Time To Find A New Bank? I am sure some of you are saying bankers are bankers and you really don’t value the relationship. That is a

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Hot Money

See Also: Effective Rate of Interest Calculation Fixed Interest Rate vs Floating Interest Rate Interest Rate Nominal Interest Rate Term Deposit Hot Money Definition Hot money refers to the cash that investors from foreign countries will invest during the short term in search of the highest interest rate possible. Normally, you do this through term

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Finding The Right Lender

See Also: Bankers’ Language is Financial Jargon Categories of Banks Funding Source Versus Lender How to Manage Your Banking Relationship Interest Rate Is it Time to Find a New Bank? Finding The Right Lender During a question and answer portion of a recent speaking engagement, I was asked “How do you find the right lender?”

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Credit Letter

See Also: Letter of Credit Credit Memorandum (memo) Debit Memorandum Trade Credit Proforma Invoice 5 C’s of Credit (5 C’s of Banking) Credit Letter Definition A credit letter, defined as a letter written by a bank which declares that the account holder has enough funds to pay for something, is most commonly used during importation. Credit

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Commercial Bank

See Also: Investment Banks 5 C’s of Credit (5 C’s of Banking) Categories of Banks Bank Statement How to manage your banking relationship. Certificate of Deposit (CD) Personal Credit for Commercial Loan Alternative Forms of Financing What Your Banker Wants You to Know Commercial Bank Definition Commercial banks are the most unrestricted and common of

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