Difference Between Lease and Finance
Both lease and financing are fundamental means to fund the purchase of an asset or investment. The end goal is the same; to give the borrower/hirer possession and right …
Sources of Finance
Letter of Credit Mechanism
To understand the letter of credit mechanism, it is very important that we first understand what a letter of credit is and why it is used. Letter of Credit …
Project Finance
What is Project Finance? Project finance is a means of funding projects that are typically infrastructure heavy, capital-intensive or related to public utilities. During its lifetime, these projects are …
Capital Lease Obligation
What is a Capital Lease Obligation? A capital lease obligation is the amount of hire charges or rent owed by the lessee to the lessor for taking capital assets …
Conversion Price
What is Conversion Price? The conversion price informs the bondholders of the number of shares that would be issued in case they opt for conversion. For example, Mary holds …
Duration of a Bond
What is the Duration of a Bond? The duration of a bond expresses the sensitivity of the bond price to changes in the interest rate. In other words, the …
Rehypothecation
What is Rehypothecation? A rehypothecation most simply put occurs when your assets are pledged with the “creditor of your creditor”. It is not as complex as it sounds. To …
Sight Letter of Credit
A sight letter of credit is a special type of letter of credit in which a payment term “sight” is used in a letter of credit. It basically means …
Samurai Bonds
1Samurai bonds are issued by non-Japanese companies, mainly in Tokyo, Japan. The bonds are denominated in the Japanese currency – Yen. A business enterprise can invade the foreign markets …
Revolving Letter of Credit
Meaning A revolving letter of credit is a single letter of credit that covers multiple transactions over a long period of time. It is very specific in a way …