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Tag: risk

Preparing a Loan Package

See Also: Can Factoring Be Better Than A Bank Loan? Loan Term Prepare an Investor Package Good Budgeting Processes What the Banker Wants You to Know Does Your Management Team Understand the Financials? Preparing a Loan Package Knowing the process of preparing a loan package can be one of the most resourceful tools for business

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Moral Hazard

See Also: Business Risk Commercial Risk Interest Rate Risk Investment Risk Risk Premium Moral Hazard Definition Moral hazard, defined are the circumstances or situations that increase the probability or riskiness of a loss. This is often due to a person’s habits or morals. Moral Hazard Explained Moral hazard risk is the risk that is associated

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Maturity Date Defined

See Also: Coupon Rate Bond Covenant Definition of a Bond Contract Long Term Debt Non-Investment Grade Bonds Par Value of a Bond Maturity Date Defined In finance, maturity date defined is the date on which a debt instrument is due. For example, when a bond reaches maturity, the issuer must pay the bondholder the principle

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Indemnity Clause

See Also: Blue Sky Laws Tips on How to Manage your Lawyer Steps to Track Money In and Out of a Company Accounting Asset Definition Indemnity Clause Definition The indemnity clause definition is the clause which compensates either party in a contract against loss. It is one of the most common ways for a party

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Investment Risk

See Also: Hedging Risk Risk Premium Business Risk Interest Rate Risk Commercial Risk Investment Risk Definition The investment risk definition is the risk of a particular investment. Furthermore, an investment risk assessment usually contains several different forms ranging from interest rate risks to currency risks. Investment Risk Meaning Investment risk contains several different measures, including the

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Investment Analysis

See Also: Investment Banks Non-Investment Grade Bonds (Unsecured Debentures) Investment Risk Comparison Analysis Customer Analysis Investment Analysis Definition Investment analysis is defined as the process of evaluating an investment for profitability and risk. It ultimately has the purpose of measuring how the given investment is a good fit for a portfolio. Furthermore, it can range

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General Partnership

See Also: Sole Proprietorship Partnership Limited Partnership S Corporation Tips on How to Manage your Lawyer General Partnership A general partnership, defined as a private business owned by two or more general partners, is one of the most common legal entities which do business. Furthermore, it is unincorporated. General Partnership Explanation A general partnership, explained

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Fixed Charge Coverage Ratio Definition

Fixed Charge Coverage Ratio Definition Fixed Charge coverage ratio, defined as a measure of how well a company can meet its fixed financial obligations (such as interest and leases) with its operating profit, also serves as a measure of the ability of a company to pay bills owed. It indicates the financial risk involved in

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Hold Harmless

See Also: Blue Sky Laws Tips on How to Manage your Lawyer Theory of Constraints Trade Credit Compliance  Audit Hold Harmless Hold harmless, defined as a clause which defines both parties as not responsible for any loss, damage, and other issue from a contract, is common in the business world. A hold harmless indemnity agreement is used

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Hedging Risk

Hedging Risk Definition Hedging is a strategy for reducing exposure to investment risk. An investor can hedge the risk of one investment by taking an offsetting position in another investment. The values of the offsetting investments should be inversely correlated. Hedge Your Bet When an investor buys a stock, he will profit if that stock

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Delivered Duty Unpaid

See Also: Delivered Duty Paid (DDP) Freight on Board (FOB) Delivery Order Ex Works (EXW) Cost of Goods Sold (COGS) Delivered Duty Unpaid Delivered Duty Unpaid or DDU is the contract assuming that a vendor or seller will assume transportation costs associated with an international or overseas sale. Furthermore, the buyer will assume all of

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Currency Swap

See Also: Currency Exchange Rates Transaction Exposure Exchange Traded Funds Translation Exposure Hedge Funds Currency Swap Definition Currency swaps are used to manage exchange rate risk. In a currency swap, two counterparties exchange the interest and principal payments on loans in different currencies. The counterparties agree to a set exchange rate, a set maturity, and a

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