Harvard Business School 9-291-026 Rev. October 29, 1993 Note on Bank Loans Bank loans are a versatile source of funding for businesses. For example, these loans can be structured either as short- or long-term, fixed or floating rate, demand or with a fixed maturity, and secured or unsecured. While each potential borrower's business is unique, reasons to borrow generally include the purchase of assets including new fixed assets or entire businesses, repayment of obligations, raising of temporary
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Stock- Stock represents the ownership in the business and a claim on part of the company’s assets and earnings. • Bond- It is a debt instrument, which describes the amount of money loaned, the rate of interest, the maturity date and method of payment of interest and principal. • Capital- Capital is known as the amount invested by the owner of the business. • Debt- Debt constitutes moneys, goods, or services that one party is obligated to pay to another
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Credit Card Debt ATTENTION GAINER: I am going to need some audience participation. Everyone take a $5, $10, or $20 dollar bill out. How many of you are willing to rip your money up? You probably wouldn’t do it and think this is crazy, but we throw money away like this in the name of our car, television, or shoes every month. Let me give you an example. SIGNIFICANCE (ATLEAST 1 SOURCE): Let’s say you owe $1000 on your credit card and you have a minimum payment due
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Ten Ways to Save Money in a Recession 1. Reduce disposable income spending and divert to pay off high interest debt. You should NEVER maintain balances on credit cards, this is a sign of financial stupidity. It's not weakness, it's dumb to believe you have money at your disposal in the form of a 20% loan from a credit card. Reducing disposable income means eating out less, purchasing less unnecessary items such as news clothes or shoes. It means downgrading your cable package, internet, movies
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inexpensively formed • It is subject to few government regulations • The business pays not corporate income taxes • It is difficult for a proprietorship to obtain large sums of capital • The proprietor has unlimited personal liability for the business’s debts. • The life of a business organized as a proprietorship is limited to the life of the individual who create it. Partnerships A partnership exists whenever two or more per-
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Business owners know it is very difficult to borrow money for the business from a creditor without a personal guarantee even if the creditor has security against all of the business. If you sign the typical standard guarantee form used by creditors, you may be giving up rights designed to level the field. Some terms of the creditor guarantee are not in your best interest. . But what is a guarantee, what defences do you as a guarantor have and what are your rights? If you must pay under the guarantee
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CONSUMER CREDIT IN AUSTRALIA DURING THE 20TH CENTURY Pierre van der Eng School of Management, Marketing and International Business College of Business and Economics Copland building 24 The Australian National University Canberra ACT 0200 Australia Fax +61 2 6125 8796 E-mail: pierre.vandereng@anu.edu.au Working Paper No: 489 ISBN: 0 86831 489 7 January 2008 JEL codes: D14, E21, E51, G23, N27 Keywords: Consumer Credit, Finance, Household Expenditure, History, Australia Consumer credit in Australia
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The grim milestones that US banks achieved in 2009 painted a bleak picture for full recovery even till this day. One of the milestones was that 702 banks were in high risk of failing as a financial institution. This was a 16 year high similar to the fall out that occurred in the 80s. This would mean that the FDIC would have to come in and clean up the mess created if the bank had indeed failed while selling off loans to other institutions so that they could hopefully make them good. The only
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Financial Terms Finance is defined as the management of money or funds; it is structured and regulated by a complex system of power relations within political economies across the state and global markets. Efficient Market is one where the market price is unbiased estimate of the true value of the investment. One factor to consider is that markets do not become efficient automatically, it is the actions of the investors, sensing bargains and putting into effect schemes to beat the market, that
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system will help you reduce the amount of capital tied up with debtors (people who owe you money) and minimise your exposure to bad debts. Good credit management is vital to your cash flow. It is possible to be profitable on paper and but lack the cash to continue operating your business. Credit management tips It is best to minimise the likelihood of bad debts through good credit management practices. The following suggestions will assist you in preparing your own policies and procedures for
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