A surety is a person or company that guarantees to pay a debt or fulfill an obligation if the original debtor or obligor fails to do so. The surety provides this guarantee to the creditor in exchange for a fee, which is usually a percentage of the total debt or obligation. What does surety mean … Read more
A debt instrument is a financial instrument that represents a debt owed by one party to another. Debt instruments can be in the form of bonds, loans, or lines of credit. What are the four basic categories of debt instruments? There are four main categories of debt instruments: secured, unsecured, convertible, and non-convertible. Each type … Read more
. Leaseback (or Sale-Leaseback): Definition and Benefits Leaseback (or sale-leaseback) is a type of real estate transaction where the owner of a property sells it to an investor and then leases it back from the investor. This type of transaction can provide many benefits, including: -The ability to free up capital for other investments -The … Read more
A debt accordion is a financial tool that companies use to manage their debt levels. It allows them to borrow money when they need it, up to a predetermined limit, and then pay it back over time. This can be a flexible and cost-effective way to finance growth or manage cash flow. The term “debt … Read more
Banker’s Acceptance: Definition, Meaning, and Types. Who is called as banker? The term “banker” is used to refer to the financial institution that provides the primary financing for a company. In most cases, this is the institution that extends the largest line of credit to the company. The banker may also be the institution that … Read more
Dunning is the process of sending letters and making phone calls to customers who have outstanding debts or who have failed to make payments. The goal of dunning is to collect the money that is owed, and it is a common practice among businesses. Dunning letters typically begin with a polite reminder that a payment … Read more
A loan paydown is the process of using money to reduce the outstanding balance on a loan. This can be done by making a lump-sum payment, making extra payments on the loan, or refinancing the loan. A loan paydown can be a good way to reduce the amount of interest you pay on a loan, … Read more
Agricultural credit is a type of corporate debt that refers to loans taken out by businesses in the agricultural industry. This can include farmers, ranchers, and other agricultural businesses. The loans are used to finance various aspects of the business, such as buying land, equipment, and other inputs. Agricultural credit is typically provided by banks … Read more
The term “net charge-off” (NCO) is used to describe the total value of all charge-offs made by a lender during a given period, minus any recoveries that were made on those charge-offs. Charge-offs are typically made when a borrower defaults on a loan or credit agreement, and the lender decides that the debt is not … Read more
A problem loan is a loan that is in danger of defaulting, meaning the borrower is having difficulty making payments and the lender is at risk of not being repaid. Defaulting on a loan can have serious consequences for the borrower, including damage to their credit score, legal action, and repossession of their collateral (if … Read more
