This category covers all kinds of topics in finance including corporate finance and financial management. The topics on financial institution and stock exchange will also be included.
An ocean bill of lading is a legal document or contract between the shipper and a carrier through waters. The document can be used as a legally binding instrument. It is also a useful document for the exporter that can be presented to the bank for clearance of payment such as through a letter of […]
Ocean Bill of Lading: Meaning, How It Works, Types and More Read More »
Mezzanine funds are a form of financing that comes with hybrid features of equity and debt. These are unsecured forms of financing and are considered risky. Hence, lenders often demand higher returns on these funds than normal debt instruments. Mezzanine funds can come as convertible financing instruments that are initially issued as a debt and
Mezzanine Fund: How Does Mezzanine Financing Work? Read More »
Companies can use either debt financing or equity financing to fund their financial needs. Normally, the cost of equity is lower than the cost of debt financing. However, if a company has a significantly larger equity portion without debt, its total cost of capital will go higher. Similarly, if a company has a too high
Debt Financing Vs Equity Financing: Key Differences Read More »
Debt financing is one of the two primary sources of funding for any business, the other is equity financing. It is the process of borrowing money from a lender in return for a premium paid in the form of interest. Debt financing comes with greater covenants and strict approval criteria. However, its interest cost is
What is Debt Financing? How It Works, Types, and More Read More »
Companies have two sources of financing; equity and debt. Equity financing is the primary source of funds for any business. It refers to investment against ownership stakes in a company. Private and public companies can use equity financing. However, the methods used to raise funds for both types of companies will vary considerably. The funding
What is Equity Financing? Read More »
A straight bill of lading is a type of shipping document that is used to deliver shipments to a particular consignee. This type of B/L is paid upfront and comes with a non-negotiable clause. It means only the consignee can receive the delivered goods and the right to receive goods cannot be transferred to a
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A clean bill of lading confirms the secured possession of shipping goods in international trade. It is issued by the carrier of goods as a receipt to the exporter. It is then presented by the importer along with other shipping documents such as an invoice and a letter of credit to claim the possession in
What is a Clean Bill of Lading? Read More »
A bullet loan is a type of loan that requires a large lump sum repayment at maturity. It is also called the interest-only or a balloon loan. Bullet loans offer several advantages to borrowers. These loans are often used in the real estate sector. Companies use these loans to fund specific projects or equipment leasing.
What is a Bullet Loan? All You Need to Know Read More »
Plain vanilla is a term in finance used for securities without special features. The Plain vanilla concept may apply to Options, Futures, Swaps, and Bonds. It depicts the simplest of the forms for financial instruments and securities. It means there are no special features attached to a financial instrument such as a Call or Put
Plain Vanilla Bond: Definition and How It Works Read More »
Deferred coupon bonds do not offer periodic interest payments. These bonds offer a deferred and accrued interest payment after a certain date, often at maturity. The interest payments can be deferred until maturity or a certain period. Deferred coupon bonds are a good investment tool for investors looking for capital gains. However, it does not
Deferred Coupon Bonds: Definition, How It Works, Types and More Read More »
