EDU Articles
Learn about investing, trading, retirement, banking, personal finance and more.
What is Cash-Flow Financing?
Cash flow financing is an alternative method of securing a loan, in which cash flows are the collateral, not assets.
In cash flow financing, also known as cash flow loans, a lending institution will base their decisions regarding the size of the loan and the loan repayment schedule on future expected cash flows of the company. The cash flows serve as collateral instead of assets, as in an asset-backed loan.
Such loans might be used to help fund an acquisition or merger, or just to fund operations and payroll costs. Banks will monitor and make certain requirements for the EV/EBITDA (Enterprise Value over Earnings Before Interest Taxes Depreciation and Amortization) and other cash flows of the company.
A company with relatively few assets but significant cash flow will secure this type of loan. A senior stretch loan, also known as an over-advance loan, is a mix between an asset-backed loan and a cash-flow loan.
What Does Debt Financing Mean?
What is Off-Balance-Sheet-Financing?
What is Accounts Receivable Financing?
What is a ratio call spread?
Ratio call spreads are options strategies where the investor combines purchased calls and short calls at the same expiration
Where do I find a good CPA?
A good CPA can be a valuable ally. You should find one who works with clients similar to you and who is easy to talk to
Can I Withdraw Money From My Defined Benefit Plan?
While you are working for your employer, you typically may not withdraw money from your Defined Benefit Plan
How Much Should I Withdraw from my Retirement Accounts Once I Retire?
A general rule-of-thumb is to withdraw no more than 4% of your retirement savings per year
What are Current Assets?
Current Assets are items on a balance sheet that are either cash or are going to be cash in the near future
What is the VIX?
VIX is the ticker of the volatility index of the S&P 500. It serves as a gauge of market sentiment (a.k.a. “fear gauge”)
What is swing trading?
Swing trading is active trading that is not frequent enough to be categorized as day-trading
What is a Mortgage Broker?
Mortgage brokers act as agents for consumers looking for the best deal possible on a home mortgage loan
What is a BitLicense?
A BitLicense is an informal name for the New York state license required of cryptocurrency businesses to operate within the state
How to use Open Interest in trading
Open interest, or OI, can be a very important number for futures, options, and other derivative markets. Open Interest is technically more like the number of outstanding shares