Subordinated Term Loan

By

A subordinated term loan or subordinated loan is debt that’s paid off after all principal loans are paid off, if there’s any capital left. It’s also known as subordinated debt,…

Read More

Airball in Financing

By

Airball or sometimes referred to as a financing gap is a portion of a loan that exceeds the amount supported by the underlying collateral and is dependent on support from…

Read More

Tangible Net Worth

By

Your tangible net worth is similar to your net worth in that it totes up your assets and liabilities, but it goes one step further. It subtracts the value of…

Read More

Restrictive Covenant

By

When a company raises debt, it is often subject to conditions, restrictions, and terms known as debt (or financial) covenants. A restrictive covenant is a condition that restricts, limits, prohibits, or prevents…

Read More

Schedule of Accounts

By

An accounting schedule is a document that provides details or proof for the information stated in a primary document. In business, accounting schedules are needed to provide proof for the ending…

Read More

Minimum Liquidity

By

Liquidity is a company’s ability to convert assets to cash or acquire cash—through a loan or money in the bank—to pay its short-term obligations or liabilities.

Read More