Characteristics of Debenture
Debentures are the popular method the companies use to procure the long term finance for their financial needs. The funds raised through debentures represent the debts, and the holder’s …
Sources of Finance
Interest on Debentures
Interest is an award that all debenture holders receive for investing in the debentures of a company. Usually, the company pays the interest at the regular interval at the …
Types of Personal Loans – These Are The Options You Have
Personal Loans are meant to cover emergency financial requirement if any. Undoubtedly, these are one of the simplest ways of getting funds through a legit source. Banks can lend …
Rating Agency
A rating agency is an organization which specializes in assessing the financial strength of a company or government entities that uses the capital markets for financing. The rating provides …
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 …
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 …
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 …
Public Securities – Types and Accounting Treatment
Public Securities are the financial instruments that one can trade in the market. Also known as marketable securities these instruments can either be Equity or Debt instrument. An Equity …
Revolving Credit Facility
Revolving Credit Facility – Meaning A revolving credit facility is a line of credit wherein the borrower pays a fixed fee to borrow funds up to a predetermined maximum …
Original Issue Discount
Original issue discount is the difference between the face value of bonds and the price at which the issuer (company) originally sells them to the investors. On its maturity, …
