Export Factoring

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A specialized variant of invoice factoring, export factoring, caters specifically to businesses that sell goods internationally. It offers non-recourse funding, meaning the business gets paid upon shipment without the risk…

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Debt-to-Income (DTI) Ratio

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The debt-to-income (DTI) ratio represents the portion of your gross monthly income allocated to cover your monthly debt obligations. Lenders use this ratio to assess your borrowing risk. You can…

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Operating Expense Ratio (OER)

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The operating expense ratio (OER) is a metric that assesses the expenses associated with running a property in relation to the income generated by the property. You can calculate the…

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Debt Yield

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Debt yield is a risk assessment tool commonly used by commercial mortgage lenders. It factors in the net operating income generated by a commercial property to estimate the pace at…

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Loan-to-Cost (LTC) Ratio

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The loan-to-cost (LTC) ratio is a financial metric used to assess the alignment between the project’s financing, typically in the form of a loan, and the actual construction costs. This…

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Zombie Firm

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Zombie firms are businesses that are able to continue operating despite being insolvent or unprofitable, often relying on external support, such as loans or subsidies, to sustain their operations. These firms should…

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Liquidity

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Liquidity denotes the ability or swiftness with which an asset or security can be turned into cash without altering its market value. The epitome of liquidity is cash itself. As a result,…

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Debtor

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A debtor is an entity or person with outstanding debts. When the debt arises from a loan from a financial establishment, the debtor is termed a borrower. If the debt…

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