A Tutorial On The Types of Commercial Loans | Jabar Post Indonesia/a> – This time JabarPost.Net will discuss about Loan.
The following is A Tutorial On The Types of Commercial Loans. And for those of you who want to find a similar explanation, you can search in the Loan category
A Tutorial On The Types of Commercial Loans | Jabar Post Indonesia
In finance, a loan is the lending of money by one or more individuals, organizations, or other entities to other individuals, organizations etc. The recipient (i.e. the borrower) incurs a debt, and is usually liable to pay interest on that debt until it is repaid, and also to repay the principal amount borrowed.
The document evidencing the debt, e.g. a promissory note, will normally specify, among other things, the principal amount of money borrowed, the interest rate the lender is charging, and date of repayment. A loan entails the reallocation of the subject asset(s) for a period of time, between the lender and the borrower.
The interest provides an incentive for the lender to engage in the loan. In a legal loan, each of these obligations and restrictions is enforced by contract, which can also place the borrower under additional restrictions known as loan covenants. Although this article focuses on monetary loans, in practice any material object might be lent.
Acting as a provider of loans is one of the main activities of financial institutions such as banks and credit card companies. For other institutions, issuing of debt contracts such as bonds is a typical source of funding.
The Small Business Buyer, www.lbo-deals.com presents a diagram on the types of different commerical loans and lenders in the marketplace for the purpose of using for small business acquisitions.
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