Debenture
What is a Debenture? A debenture is a long-term debt instrument issued by corporations and governments to secure fresh funds or capital. There is no collateral or physical assets required to back up the debt, as the overall creditworthiness and reputation of the issuer suffice. Coupons or interest rates are offered as compensation to the...
Guarantee
What is a Guarantee? A guarantee is a legally binding agreement signed by a guarantor, on behalf of a borrower. It guarantees that, should the borrower trigger an event of default that cannot be remedied, the guarantor will make the lender whole on its credit exposure. A guarantee can be signed by any number of...
Venture Debt
What is Venture Debt? Venture debt is a type of debt financing obtained by early stage companies and startups. This type of debt financing is typically used as a complementary method to equity financing. Venture debt can be provided by both banks specializing in venture lending and non-bank lenders. Venture debt is frequently used as...
Debit Credit Analysis
What is Debit Credit Analysis? Accountants perform debit credit analysis at all times as part of their responsibilities. Business transactions occur daily, and it is the accountant’s role to record the transactions appropriately to determine their impact on the business. The transactions are recorded in both the debit and credit sides of an account, where...
Municipal Bond Credit Analysis
What is Municipal Bond Credit Analysis? Municipal bond credit analysis involves evaluating a municipal bond to determine its viability as an investment opportunity. A municipal bond is a type of investment security that is designed to extend credit to the government or its entities. It acts as an opportunity for the government to raise funds to...
