Understanding Off-Balance Sheet Financing (OBSF).

Off-balance sheet financing (OBSF) is a term used to describe financing transactions that are not recorded on a company’s balance sheet. These transactions are often used to reduce a company’s debt-to-equity ratio or to avoid debt covenant violations. OBSF can take many forms, but the most common are operating leases, finance leases, and sale-leaseback transactions. … Read more

Advertising Allowance.

Advertising allowance is an arrangement between a manufacturer and a retailer in which the manufacturer agrees to pay a certain amount of the advertising costs incurred by the retailer. The purpose of an advertising allowance is to promote the sale of the manufacturer’s products by the retailer. The amount of the advertising allowance is typically … Read more