Debt service coverage ratio
What Is Debt Service Coverage Ratio?The debt service coverage ratio (DSCR) is a crucial indicator of a company’s capacity for loan repayment, acquisition of fresh capital, and dividend distribution.It [...]
Investor
What are Investors?Individuals or entities (such as businesses or mutual funds) who invest money with the hope of making a profit are called investors. Investors depend on a variety [...]
Real estate investing
What Is Real Estate Investing?It is possible to invest in real estate by buying, managing, renting out, or selling properties for a profit. Investing in real estate, either actively [...]
Loan to value ratio
What Is Loan To Value Ratio?Financial institutions and other lenders assess the loan-to-value (LTV) ratio as a gauge of the lending risk prior to accepting a mortgage. Loans with [...]
Liquid asset
What are the Liquid Assets?Liquid assets are those that can be swiftly and readily converted into cash. Examples of liquid assets include cash, money market instruments, and marketable securities. [...]
Annual revenue
What Is An Annual Revenue?The total amount of money a business brings in each year from the sale of goods, services, assets, or capital is known as annual revenue. [...]
Financial statement
What Are Financial Statements?A financial statement is a document detailing the activities and financial success of a firm. Government organizations, accounting companies, etc. routinely perform a review of financial [...]
Hard money
Hard money meaningA common form of lending in real estate investing is called hard money. Other names for hard money loans are asset-based loans, bridge loans, and STABBL loans [...]
Face value
What Is A Face Value?A financial concept known as “face value” refers to a security’s nominal or monetary value as indicated by its issuer. The original cost of the [...]
Loan term
What Is A Loan Term?The length of a loan, or the time it takes to be fully repaid when the borrower is making scheduled payments, is referred to as [...]
Receivables
What Are Receivables?Receivables, also known as accounts receivable, are sums owing to a business by its clients for products or services that have already been provided or utilized but [...]
Invoice
What Is An Invoice?A time-stamped commercial document known as an invoice lists the specifics of a transaction between a buyer and a seller and records it. The invoice often [...]
Balance Sheet
What is a Balance Sheet?A balance sheet in financial accounting is a summary or list of financial balances for an individual or company. It can be sole proprietorship, business [...]
Funding
What Is Funding?The purpose of a fund is to set aside funds for a specific purpose. For instance, a municipal government can create a fund to build a new [...]
Down payment
What Is A Down Payment?A down payment is a quantity of money that a buyer pays at the beginning of a pricey good or service purchase. A portion of [...]
Investment
What Is An Investment?A purchase made with the intention of creating income or capital growth is known as an investment. An asset’s value increasing over time is referred to [...]
Credit score
What Is A Credit Score?A credit score is a three-digit figure that ranges from 300 to 850 and is used to determine your credit risk, or how likely you [...]
Obligation
What is an Obligation?Simply, obligation refers to the responsibility of a party to fulfill the contractual terms and conditions. In case, the obligation is not met, the legal system [...]
Leasing
What Is Leasing?A lease is a legally binding agreement between two parties in which one commits to rent property owned by the other on particular terms. It allows a [...]
Interest rate
What is an Interest Rate?In addition to the principal, the interest rate refers to how much a lender charges the borrower for the use of assets. The money generated [...]
Cash flow
What is Cash Flow?Cash Flow is net balance of cash coming into and out of a business at a certain point in time. A business’s cash is continually flowing [...]
Asset
What is an Asset?The term asset refers to a type of economic advantage that people or entities have today, tomorrow, or in the future. Consequently, an asset is anything [...]
Renovation
What is a RenovationRenovation means to “create new again”—to “revitalize.” The process of renovating (also known as remodeling) a broken, damaged, or outmoded structure. Commercial and residential renovation are [...]
Finance committee
What is a Finance Committee?The Finance Committee oversees the organization’s budget and provides financial analysis, guidance, and monitoring. Their main role is to guarantee that the organization has the [...]
Donation
What are Donations?Individuals, businesses, and other organizations can make donations to support the organization’s mission and objectives. They also provide funds to enable organizations to continue providing high-quality programs [...]
Credit
What is the meaning of Credit?This term has many meanings in the financial world, but credit is generally defined as a contract agreement in which a borrower receives a [...]
Fundraising
What is Fundraising?Fundraising is the process of soliciting and collecting voluntary financial contributions from individuals, businesses, charitable foundations, or government agencies. Although fundraising is most commonly associated with efforts [...]
Charity
What is a Charity?Charities are organizations whose primary goals are charity and social well-being. charitable, educational, religious or any other activity serving the public interest or common benefit.There are [...]
Budget
What a Budget?Budgets are an estimate of future revenue and expenses. They are usually prepared and re-evaluated periodically. A budget can be created for an individual, a group, a [...]
Capital
What is Capital?Capital in the form of money or other assets owned by a person or organization or available or contributed for a particular purpose such as starting a [...]
