Working Capital Loan and Finance
What is a Working Capital Loan?Working capital loans are financial products structured by financial institutions to help businesses fund their working capital needs and… Read Article
Bank Overdraft Facility
Overdraft DefinitionAn overdraft occurs when an account balance goes below zero after a transaction and can be viewed as a short-term loan from a… Read Article
Net Operating Income
What is Net Operating Income?Net Operating Income (NOI) is a crucial financial metric used in the field of real estate and business analysis. It… Read Article
Importance of Working Capital Management
Working capital is part of the total assets of the company. Generally, it is the difference between current assets and current liabilities. Practically speaking,… Read Article
Capital Employed
Capital Employed is the total amount of investment made for running the business. It should not be confused with the term “capital.” Capital represents… Read Article
Hypothecation
Hypothecation MeaningHypothecation means offering an asset as collateral security to the lender. The ownership lies with a lender, and the borrower enjoys the possession.… Read Article
Working Capital Cycle
What is Working Capital Cycle (WCC)?Working Capital Cycle (WCC) refers to the time taken by an organization to convert its net current assets and… Read Article
Sale and Leaseback
Sale and Leaseback – DefinitionSale and Leaseback is a simple financial transaction that allows a person to lease an asset to himself after selling… Read Article
Rights Issue of Shares
A rights issue is one of the ways by which a company can raise equity share capital among the various types of equity share… Read Article
Incremental Budgeting – Meaning, Importance, Pros, and Cons
What is Incremental Budgeting?Incremental Budgeting is a type of budgeting method that uses either the previous year’s budget or the actual results to prepare… Read Article
Shareholders Vs Stakeholders
We put ‘shareholders vs. stakeholders’ as ‘owners vs. any parties interested in the company.’ Note that shareholder is a subset of stakeholders. A shareholder… Read Article