DEBT

Sure, here is the definition of the word “surety”: Surety: A person who guarantees or pledges to pay a debt or perform a duty on behalf of another person. Here is an example sentence: The bank required a surety bond for the contractor to ensure that the job would be completed on time.

Project Finance Project finance is a specialized type of financing that involves the raising of capital for specific projects or investments. It differs from traditional banking loans in that it is tailored to the unique needs of each project rather than the borrower’s overall financial standing. Key Concepts: Project: A specific undertaking or investment project […]

A lien is a legal charge on a person’s property that secures payment or performance of a debt or other obligation. Lien can be: 1. Security Lien: Creates a security interest in collateral for a loan.2. Mechanics Lien: Ensures payment for auto repairs from mechanics.3. Purchase Money Lien: Holds funds until a purchase is complete.4. […]

Net Interest Margin (NIM) Net interest margin is a measure of a bank’s profitability and is calculated by dividing the difference between interest income and interest expense by total assets. It is a key metric used to assess a bank’s ability to generate returns on its investments. Formula: Net Interest Margin = (Interest Income – […]

Definition: Finance is the management of money and other assets to meet specific goals and objectives. It encompasses a wide range of activities, including financial planning, investment, banking, and risk management. Key Concepts: Financial Planning: Developing a strategy to manage financial resources effectively. Investment: Putting money into assets such as stocks, bonds, or real estate […]

Sure, here’s the definition of lease: Lease: A legal agreement between two parties, called lessor and lessee, where the lessor grants the lessee the right to use an asset for a specified period in exchange for regular payments. Here are the key points about a lease agreement: Lessor: The owner of the asset who grants […]

Definition: An advance payment is a payment made in advance of the delivery of goods or services. It is typically a partial payment made to secure a contract or agreement. Examples: A customer making a deposit on a car purchase. A student paying tuition fees in advance. A landlord receiving rent payment for the first […]

Solvency refers to a company’s ability to meet its current liabilities and long-term obligations on time and in full. It measures its liquidity, which is its capacity to meet financial obligations when they become due. Here are the key aspects of solvency: Solvency Ratios:* Current Ratio: Measures the company’s ability to meet current liabilities in […]

A debit note is a document that records a debt owed by a customer to a business. It is typically issued when a customer makes a purchase on credit and is used to track the payment due date. Here are some of the key points regarding debit notes: Essentially: A debit note is a demand […]

Netting Netting is a technique used to catch or enclose animals or objects using a mesh of netting material. The mesh size and strength are typically tailored to the specific object or animal being captured. Types of Netting: Mesh netting: Made of interwoven strands or wires, with openings or meshes of a specific size. Block […]