Tag: credit

Letter of Credit

See Also: Line of Credit (Bank Line) Annual Percentage Rate (APR) Company Life Cycle How Important is Personal Credit While Negotiating a Commercial Loan? Letter of Credit Definition What are letters of credit? Define a letter of credit as a document issued by a bank that guarantee payment to a seller on behalf of a

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Interest Rate Definition

See Also: Effective Rate of Interest Calculation Interest Expense What are the 7 Cs of banking Time Value of Money (TVM) Interest Rate Risk LIBOR vs Prime Rate Federal Funds Rate Definition Treasury Inflation Protected Securities Interest Rate Definition An interest rate signifies a borrowing cost. The interest rate definition is the rate the lender

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Personal Credit for Commercial Loan

Personal Credit for Commercial Loan Personal credit for commercial loan is generally more important in obtaining a loan when the size of the company is small and/or the owner(s) make most, if not all, significant business decisions. This is due to the potential for an individual’s approach to business to mirror how they conduct their personal financial

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Improve Your Credit Score

See Also: 5 Cs of Credit What are the 7 Cs of banking Line of Credit Credit Rating Agencies How Important is Personal Credit in Negotiating a Commercial Loan? Dilemma of Financing a Start Up Company Improve Your Credit Score In another article, I told you about Chris’ dilemma with his poor credit score in

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Electronic Funds Transfer (EFT)

See Also: Electronic Data Interchange Technology Assessment Criteria How to evaluate IT systems How Redundant is Your Data Communications Link? Research and Development Electronic Funds Transfer (EFT) Definition Electronic funds transfer (EFT) refers to an electronic financial transaction. According to the U.S. Electronic Fund Transfer Act, an EFT is a non-paper financial transaction initiated via

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Credit Sales

See Also: Trade Credit 5 Cs of Credit Collateralized Debt Obligations Cash Flow Statement Balance Sheet Credit Sales Definition In accounting, credit sales refer to sales that involve extending credit to the customer. The customer takes the product now and agrees to pay for it later. Credit sales are a type of trade credit. They

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Credit Memorandum Definition

See Also: Debit Memorandum (memo) Credit Sales Account Reconciliation Chart of Accounts (COA) Transaction Exposure General Ledger Reconciliation and Analysis Debt Compliance 101: Keeping Your Banker Happy Credit Memorandum Definition The credit memorandum definition or memo is a form or document, sometimes called a credit memo invoice, that informs a buyer that the seller will be

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Below the Line

See Also: Accounting Income vs. Economic Income Tax Efficiency Payroll Accounting Accrual Based Accounting Realizing Profit Potential General Ledger Reconciliation and Analysis Customer Profitability Below the Line Definition The below the line definition is income or expense in accounting which have no noticeable effect on company profits in the current period; however, it is an unofficial

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Allowance for Uncollectible Accounts Explained

See also: Does Your Management Team Understand the Financials? General Ledger Reconciliation and Analysis Allowance for Uncollectible Accounts Allowance for Uncollectible Accounts Explained When companies sell products to customers on credit, the customer receives the product and agrees to pay later. The customer’s obligation to pay later is recorded in accounts receivable on the balance

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Accounts Receivable Collection Letter

See Also: Collect accounts receivable Why Use a 13-Week Cash Flow Report as a Management Tool? Unlock Cash in Your Business Accounts Receivable Collection Letter Always send reminder and collection letters. Letters combined with calls can help speed up your collections! Trigger points for letters may be as follows: Balance at 30 days receives a

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5 Cs of Credit (5 Cs of Banking)

See Also: What are the 7 Cs of banking How to Manage Your Banking Relationship Line of Credit Trade Credit Collateralized Debt Obligations 5 Cs of Credit (5 Cs of Banking) The 5 Cs of credit or 5 Cs of banking are a common reference to the major elements of a banker’s analysis when considering

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2/10 Net 30 Example

See Also: 2/10 net 30 2/10 Net 30 Example Mary has started a processing plant for natural vegan snacks. In her business, equipment does all of the heavy lifting that human resources can not. Mary has purchased many pieces of equipment. One of these is a large oven to bake her healthy snacks in. She

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