Invoice Factoring and Invoice Financing are two financial solutions that businesses use to improve cash flow by leveraging their accounts receivable. While they are related concepts, they operate differently in…
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Invoice Factoring is a financial transaction in which a business sells its accounts receivable (invoices) to a third-party company, known as a factoring company or factor, at a discount. The…
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A Subordinated Term Loan is a type of loan that ranks below other debts in terms of repayment priority in the event of a borrower’s liquidation or bankruptcy. This means…
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In financing, particularly in the context of commercial lending and leveraged buyouts, an Airball refers to the portion of a loan that exceeds the collateral's value. This term is used…
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Stretch Financing or a Stretch Loan is a type of loan or credit facility that allows a borrower to access funds beyond what traditional financing might provide, by combining elements…
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Tangible Net Worth (TNW) is a measure of a company’s financial strength, representing the value of its physical, or "tangible," assets after deducting liabilities and intangible assets. Unlike standard net…
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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…
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A Schedule of Accounts is a detailed listing of the individual accounts that make up a specific category in the general ledger, typically accounts receivable or accounts payable. This schedule…
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