Factor

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A factor is an intermediary that offers companies immediate cash or financing by buying their accounts receivables. Essentially, a factor is a financial entity that agrees to provide the company…

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Dilution

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Dilution is any portion, regardless of why, of your receivables that you did not collect. This is important as the amount available from your line of credit with the bank is based on your outstanding accounts receivable balance. The bank wants to…

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Call Loan

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A call loan is a type of loan that can be demanded for repayment by the lender at any given time. The purpose of a call loan is to minimize…

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Interest Coverage Ratio

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The interest coverage ratio is a financial metric that assesses a company’s ability to meet its interest obligations on its outstanding debt. It provides insight into the company’s ability to…

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Debt to Assets Ratio

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The Debt-to-Assets ratio is a financial ratio that indicates the proportion of a company’s total debt to its total assets. It is used to assess the extent to which a…

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Debt Equity Ratio (D/E ratio)

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The debt-to-equity ratio (D/E ratio) is a financial ratio that measures the proportion of a company’s total debt to its shareholders’ equity. It provides insight into the company’s capital structure…

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