Yield Gap – What It Means And How To Interpret It?
Yield gap is a term that is commonly used in the financial world and agriculture as well. For this article, we will primarily be focusing on its financial meaning …
Initial Outlay – Meaning, Importance And Calculation
Before one starts a business, it is important to know the amount that one will be investing in it. This initial amount is the initial outlay or initial investment …
Letter of Credit Vs. Line of Credit
Due to the uncanny similarity in their names – many people get confused between a letter of credit and line of credit. However, the similarities don’t just end with …
Vendor Financing – Meaning, Importance And Types
Vendor financing as the name suggests means financing the customer or lending money to a customer. Under this vendor lends money to a customer to buy the product or …
Idle Cash – What It Is And How To Earn From This Cash?
Idle cash or idle money as the name implies is the cash that is sitting idle, means it is not earning any income. Such cash (also known as barren …
EBITDARM – Meaning, Importance And Shortcomings
EBITDARM means earnings before interest, tax, depreciation, amortization, rent and management fees. Like EBIT (earnings before interest and taxes) and EBITDA (earnings before interest, taxes, depreciation, and amortization), it …
PIK Loan – Meaning, Features And Drawbacks
A PIK loan or payment-in-kind (PIK) loan is one where the payment of interest is not in cash. In this loan, there is no cash flow from the borrower …
Activist Shareholder – Who They Are And What They Do
An activist shareholder is an investor who uses his or her right as a shareholder to bring a change in the company. Such shareholders also try to influence the …
Letter of Guarantee
Letter of guarantee is a written contract that the bank issues on behalf of its customers who enter a sale agreement to buy the goods from a supplier. It …
Business Life Cycle
Every business goes through seven phases of a life cycle. These phases are the idea, start-up, growth, established, expansion, decline, and exit stages. The knowledge of what phase a …
