A promissory note is a legal financial document that serves as a written promise by one party (the issuer or maker) to pay a specific sum of money to another…
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Balloon Payments refer to a large, lump-sum payment that is due at the end of a loan term, after a series of smaller, regular payments have been made. Balloon payments…
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Prime Plus Spread (often referred to as Prime Plus Rate) is a commonly used interest rate structure in lending, where the interest rate charged on a loan is calculated by…
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Suppressed Availability refers to a situation in lending or credit management where the actual available borrowing capacity or credit limit of a borrower is reduced or restricted, but the borrower…
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Bulk Factoring is a type of factoring arrangement where a business sells a large portion or all of its accounts receivable to a factoring company (factor) in exchange for immediate…
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The Secured Overnight Financing Rate (SOFR) is a benchmark interest rate that reflects the cost of borrowing cash overnight, collateralized by U.S. Treasury securities in the repurchase (repo) market. It…
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A loan covenant is a set of conditions or restrictions that a borrower must agree to in order to obtain a loan from a lender. These covenants are designed to…
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A Collateral Loan or Collateralized Loan is a type of secured loan in which the borrower pledges an asset or property as collateral to the lender in exchange for the…
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