What is unsecured borrowing?

Q: Which are the major problems facing a lender when reviewing a loan request made by a borrower?

A: Introduction: A loan agreement is nothing but an agreement between a lender and the borrower which…

Q: Define cost of borrowing.

A: Company needs to complete the goal set initially by the top level of management. These goals include…

Q: what are the Benefits and Costs of Delinquency In the field of lending

A: Whenever a customer does not meet their obligation, a cost aries as the payment on the credit sales…

Q: Type of CPM Loan?

A: Introduction: CPM refers to constant payment mortgage, this is nothing but an arrangement…

Q: What is a creditor

A: Given the following question: What is a creditor?

Q: Which are the Borrower’s Rights to Reinstate?

A: The person that takes something from another person with a promise to return back at a specified…

Q: For a creditor; how is a loan impairment recorded?

A: Creditors:   They are the outside entities to whom the business owes money for any product or a…

Q: Explain the term Right of Entry: Lender in Possession?

A: The question is based on the concept of giving right of entry in case of mortgage arrangement in…

Q: How can we determine a Loan's Balance, Principal, and Interest?

A: Loan balance can be determined with the help of formulae: PV is present value r is rate N is number…

Q: Why loan support is needed, explain.

A: Loans are any type pf financial credit facility in which a sum of money is lent by one party to…

Q: What is the Importance of Accrued Interest and Loan Payments?

A: When the bonds are being purchased and sold at that time accrued interest is considered to be…

Q: What is Unsecured financing?

A: Whenever a person requires financial assistance, they may contact a financial institution and seek…

Q: ill of exchange important? Why

A: Bill of exchange is some sort of promise to other that he will pay the given amount on a given date…

Q: What contingencies are commonly found in permanent or take-out loan commitments? Why are they used?…

A: The contingencies found in permanent or take-out loan commitments and their use are as follows: A…

Q: Define the term pure borrowing?

A: The term borrowing is defined as the amount received from another party with the agreement that the…

Q: give the definition, recognition, measurement and derecognition of "borrowing cost"

A: A uniform group of principles, standards, and procedures that explain the basic financial accounting…

Q: For what items may a lender require escrow accounts from a borrower?

A: Escrow account is the third party account in which securities or assets are kept until the…

Q: How one determines where to borrow or not? What factor into the decision making process?

A: The act of borrowing money or the sum of money borrowed by an individual, company, government, or…

Q: What are some possible agency conflicts between borrowers and lenders?

A: Answer: Agent: An agent is one who provides work on principal’s behalf.  Principal authorizes agent…

Q: Define Incremental Borrowing Cost?

A: Incremental borrowing cost is used in the context of the cost of borrowing additional funds.

Q: how do deposit intistitutions differ from non-deposit institutions?

A: A financial institution is an intermediary business entity that helps to supply money from surplus…

Q: What is securitization? What are its advantages to borrowers?What are its advantages to lenders?

A: Securitization is a financial process that takes an asset of some kind and turns it into a security,…

Q: Differentiate a “deposit" and a “deposit substitute"?

A: Deposit is the amount of customer money which is held by bank or other institution. Deposit…

Q: What is financing deficit ?

A: When the amount of expenses exceeds the amount of revenues in a particular period is known as the…

Q: Explain mezzanine loan?

A: Mezzanine financing is a blend of both debt and equity financing. It is a way for firms to raise…

Q: Explain Loan Closing Costs and Effective Borrowing Costs?

A: Closing costs are the uses that buyers and vendors ordinarily pay to total a real estate deal, over…

Q: What is meant by a term-loan agreement?

A: A Loan Agreement, also known as a term loan, demand loan, or loan contract. It basically is a legal…

Q: What does “nonrecourse” financing mean?

A: Nonrecourse financing is a branch of commercial lending. It makes the lender only to repay from the…

Q: What is the purpose of a bridge loan?

A: Bridge loan is a short term loan taken to finance short term requirements of funds while awaiting…

Q: What are the advantages and disadvantages of using credit?

A: Credit is defined as the financial agreement where the borrowers receive something valuable and in…

Q: What is a buydown loan? What parties are usually involved in this kind of loan?

A: INTRODUCTION There are various mortgage financing techniques which helps to reduce cost for the…

Q: what are the disadvantages of bill of exchange?

A: A bill of Exchange is a certificate of agreement between two parties where one party agrees to pay…

Q: What is Temporary financing?

A: There are various sources of temporary financing which are as follows: a) Commercial paper b) Bank…

Q: What is Secured Borrowing?

A:

Q: What does the term noncontrolling interest mean?

A: This term is generally used when consolidated statement is prepared by the parent entity. There are…

Q: Explain the term Verification of Borrower Assets?

A: Borrower is the person who take money on credit from a financial or non- financial institution.…

Q: What are the credit transfer markets?

A: Financial market is called as a place where all securities such as bonds, shares, debentures etc.…

Q: How is Borrowing capitalized

A: Ans. Borrowing costs are interest and other expenses or costs that an entity incurs in connection…

Q: why simple interest is important to use when borrowing money

A: Simple interest is also referred to as interest. It refers to the payment that is received from a…

Q: How does getting a secured loan using accounts receivableas collateral differ from factoring?

A: In factoring, the corporation sells their receivable balance to the factoring corporation at a…

Q: What is a promissory note? What are its benefits?

A: Promissory note:A promissory note is a legal financial instrument that has a written promise between…

Q: What is a non interest bearing notes?

A:

Q: Types of seller financing?

A: Seller Financing: A real estate or property agreement under which the mortgage process is managed by…

Q: What is SBA Loans

A: Loans- Business loans, also known as commercial loans, are a type of finance used to fund business…

Q: What is the meaning of Loan assumably?

A: Introduction: Assumable loan is nothing but a mortgage which can be passed to another party by the…

Q: Should liability for rent deposit be amortized? Why or why not?

A: The assets are amortized as they provide benefits for the long period.

Calculating the Return On A Loan