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Tag: loan

Due Diligence on Lenders

See Also: Relationship with Your Lender Finding the Right Lender The Dilemma of Financing a Start-up Company Every Business has a Funding Source, Few have a Lender Angel Investor Due Diligence on Lenders I am sure all of you have applied for some type of a loan from some institution to be used for college,

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Down Payment Definition

See Also: Payment Terms Notes Payable Payroll Accounting PEO Arrangement Compared to Outsourcing Payroll Payback Period Method Down Payment Definition A down payment can be defined as an initial payment towards the financing of an expensive purchase. For individuals, this purchase is similar to a car or home. For businesses, however, this purchase could be

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Credit Life Insurance

See Also: Employee Health Insurance Plan Third Party Insurance Personal Credit for Commercial Loan How to avoid additional insurance premiums Insulate Your Company from Rising Health Insurance Costs Credit Life Insurance Definition Individuals use credit life insurance policies to cover the outstanding debt on a loan. As the loan decreases, so does the plan until

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Financial Jargon

See Also: 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? Financial Jargon My client, Elliott, met a friendly banker at a networking function. The banker told him, “I like your business and would like to loan

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Can Factoring Be Better Than A Bank Loan?

See Also: What is Factoring Receivables The Dreaded “F” word Accounting For Factored Receivables Journal Entries For Factored Receivables Working Capital Preparing a Loan Package Can Factoring Be Better Than A Bank Loan? What I have found is that normally a business owner who needs financing for the growth of their business start their financing

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Annual Percent Rate (APR)

See Also: Effective Rate of Interest Calculation Fixed Interest Rate vs Floating Interest Rate Interest Expense Carried Interests Annual Interest Rate Definition The Annual percentage rate (APR) of a loan is the yearly interest rate expressed as a simple percentage. A bank or lender quotes the rate or APR. The annual percent rate does not incorporate

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Adjusted Gross Income Definition

See Also: Financial Ratios Operating Profit Margin Ratio Net Profit Margin Adjusted Gross Income Margin vs Markup Adjusted Gross Income Definition The adjusted gross income definition (AGI) is a taxpayer’s gross taxable income. It consists of total income minus allowable adjustments. These allowable adjustments, also known as “above the line deductions,” reduce the amount of

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Documents in a Loan Package

Requesting a loan to start a new business or expand an existing one requires the business owner to become familiar with the documents in a loan package. Once you have gathered the information and documents needed, knowing how to organize the loan package is the next step. Because presentation is key, this is actually one

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Personal Credit: How Important For Business Loans?

Often business owners go to great lengths to pay the company’s bills on time. Often at the expense of their not taking a salary. When cash is tight which is more important; your company credit rating or your personal credit rating and why? Personal Credit: How Important For Business Loans? Bankers don’t like it but

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The 5 C’s of Credit

The 5 C’s of credit or 5C’s of banking are a common reference to the major elements of a banker’s analysis when considering a request for a loan. The 5 C’s of Credit Namely, these are Cash Flow, Collateral, Capital, Character and Conditions. This article will provide an in-depth description of each of the 5

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FASB Chief to Propose Accounting Rule Change

In this blog, we look at how the FASB Chief to propose accounting rule change will impact your business. FASB Chief to Propose Accounting Rule Change The Chairman of FASB is set to propose that bank regulators be allowed to make adjustments to the financial statements of banks in order to determine whether those banks

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