Long Term Debt Financing usually applies to assets your business is purchasing, such as equipment, buildings, land, or machinery.
Long Term Debt Financing usually applies to assets your business is purchasing, such as equipment, buildings, land, or machinery.
Not exact matches
«Thus we will continue to add
long -
term debt as needed to
finance our expansion of original content, including in Q2» 17.»
Longer -
term financing contracts, and the resulting increase in consumer
debt, also meant more owners were «underwater» — that is, they owed more on their loans than their cars were worth.
Provide
long -
term working capital for operational expenses or to purchase inventory Short -
term working capital, including seasonal
financing and exporting Purchase equipment, machinery, furniture, fixtures, supplies or materials Buy land or to purchase, build or renovate an existing building Expand an existing business Refinance
debt (under certain conditions)
The amount of
debt that is projected under the extended baseline would reduce national saving and income in the
long term; increase the government's interest costs, putting more pressure on the rest of the budget; limit lawmakers» ability to respond to unforeseen events; and increase the likelihood of a fiscal crisis, an occurrence in which investors become unwilling to
finance a government's borrowing unless they are compensated with very high interest rates.
Debt interest costs are fully tax deductible as a business expense and in the case of
long term financing, the repayment period can be extended over many years, reducing the monthly expense.
With
long -
term debt financing, the scheduled repayment of the loan and the estimated useful life of the assets extends over more than one year.
With
debt financing, the fixed repayment schedule and the high cost of loan repayment can make it difficult for a business to expand while with equity
financing, money is invested in the business in exchange for equity - there is no fixed repayment schedule and investors generally have a
long term goal of return on investment.
Drawing from our knowledge of
debt restructuring, bankruptcy, public
finance, municipal law and governance, labor law, employee benefits, tax, litigation, government contracts and more, our attorneys are adept at positioning municipalities for
long -
term success.
And these deficits are now being
financed in riskier ways: more
debt than equity; more short -
term debt than
long -
term debt; more foreign - currency
debt than local - currency
debt; and more
financing from fickle cross-border interbank flows.
«As
long as the maturities are spread out, and the interest cost is built into our content budgets, we think
long -
term debt is the best way for Netflix to
finance the production of content.»
If you are ready to accept outside investment and believe you will be able to access sufficient
financing from private investors, develop a
long -
term financing strategy for your business that plans for equity investment and the use of
debt to start and scale your business.
Even massive
debt -
financed spending will not help unless the projects are intentionally designed to durably enhance the
long -
term productivity of the U.S. economy, to avoid duplicative capacity, and to relieve constraints that threaten to become binding in the future (personally, I remain convinced that renewable energy should be central to that list).
The ratio business equity to
long -
term debt provides a window of opportunity identifying the cause and effect of industry
finances.
(3) Represents the incremental change in interest expense resulting from the fair value adjustment of Kraft's
long -
term debt in connection with the 2015 Merger, including the elimination of the historical amortization of deferred
financing fees and amortization of original issuance discount.
In his 2012 fall report, the Auditor General raises the issue of «
long -
term fiscal sustainability» — the government's capacity to
finance its activities and
debt obligations in the future without imposing an unfair tax burden on future generations.
If businesses are looking for more
longer term fixed
financing, they may, of course, go direct to the market for new issues of
debt (particularly as lenders will also be looking for more
longer term fixed interest assets).
Finally, for some time the
Finance Department has been engaged in a strategy of locking into
long -
term debt at historical low interest rates, thereby minimizing the impact of higher interest rates on public
debt charges.
2) The
debt of financial companies is very important because they often borrow short -
term to
finance longer -
term assets.
They are
long -
term strategies that can help you to learn more about how to handle your
debt and help you to become wiser about your
finances.
PBO analysis suggests if the
Finance (private sector) projections turn out as planned, the government will be back to structural surplus by 2015 and will be in a positive
long term fiscal gap position (declining net
debt relative to GDP in face of aging aging demographics).
The Deputy Head of Macroeconomic Research Unit, Ministry of
Finance, Dr. Millicent deGraft - Johnson who spoke on the governments short to medium -
term development programme said it was aimed at providing opportunities for growth and job creation through the private sector, and had developed concrete reform actions to tackle key challenges to private investment such as ensuring macroeconomic stability and
debt sustainability, improving the ease of doing business and enhancing access to affordable and
long -
term financing and de-risking instruments.
McMahon joins other financial experts in warning against the use of
long -
term debt to
finance the purchase of products with short useful lives, as Capital has reported.
17.4 assist developing countries in attaining
long -
term debt sustainability through coordinated policies aimed at fostering
debt financing,
debt relief and
debt restructuring, as appropriate, and address the external
debt of highly indebted poor countries (HIPC) to reduce
debt distress
This will not only prevent you from getting buried in student loan
debt, but also hone your skills in budgeting and wealth management which can have a
long -
term impact on how you will handle your
finances in your lifetime.
We can't guarantee that your credit will be perfect tomorrow or
debt free tomorrow, but with a dedicated
long term approach, we can worth with you to get your
finances back on track.
It would eventually prove to be a fatal error, and one that an asset - liability manager should have known well — never
finance a
long term asset with short -
term debt.
Financing long - term assets with short - term debt is even cheaper and riskier than financing with debt that matches the term of t
Financing long -
term assets with short -
term debt is even cheaper and riskier than
financing with debt that matches the term of t
financing with
debt that matches the
term of the asset.
With
debt financing, the fixed repayment schedule and the high cost of loan repayment can make it difficult for a business to expand while with equity
financing, money is invested in the business in exchange for equity - there is no fixed repayment schedule and investors generally have a
long term goal of return on investment.
With
long -
term debt financing, the scheduled repayment of the loan and the estimated useful life of the assets extends over more than one year.
Debt interest costs are fully tax deductible as a business expense and in the case of
long term financing, the repayment period can be extended over many years, reducing the monthly expense.
Why do you think that holding down
longer -
term rates on the highest - quality
debt will have any impact on lower quality
debts, which is where most of the economy
finances itself?
Debt consolidation can be a powerful tool for getting control of your
finances, but only if you have a
long -
term plan and the discipline to stick with it.
While governments and corporations typically tap the securities markets for
long -
term funding needs, they may also need to issue
debt for shorter periods to
finance imports, to meet seasonal cash - flow needs or to create «bridge»
financing until conditions are right for
longer -
term debt issues.
Filed Under:
Debt Consolidation, Mortgage, Personal
Finance Tagged With: budget, cosign, credit score,
Debt Consolidation,
Debt Problems, default, emotions, household budget, late payments,
long term goals, missed payments
New
long term assets were created, and
financed with not enough equity, and
debt terms that were shorter than the life of the assets.
They avoid talking to creditors, do not offer explanations and the result can be a temporary problem with
finances that becomes a
long term debt problem.
The resulting
long -
term debt and unmanageable fees and interest are repercussions that affect not only your
finances, but your entire life.
2) The
debt of financial companies is very important because they often borrow short -
term to
finance longer -
term assets.
Under ordinary circumstances, prudence dictates that
long -
term assets be
financed by equity or
long -
term debt.
The only way to survive in a credit crunch is plan ahead by getting adequate
long -
term financing (equity and
long -
term debt), and keep a «war kitty» of cash on the side.
Debt - to - equity ratio of 0.25 calculated using formula 2 in the above example means that the company utilizes
long -
term debts equal to 25 % of equity as a source of
long -
term finance.
Debt - to - equity ratio of 0.20 calculated using formula 3 in the above example means that the
long -
term debts represent 20 % of the organization's total
long -
term finances.
When chosen wisely,
long -
term debt financing provides a number of advantages to the business and its owner.
If you obtain
long -
term debt financing, you increase the likelihood of qualifying for additional
debt financing.
The need for short - dated tax - free muni bonds drives hedge funds (typically) to buy
long munis and sell short
term debt to
finance the bonds, which tax - free money market funds buy.
To support their
long -
term capital requirements, we and our insurance subsidiaries may need to increase or maintain their statutory capital and surplus through
financings, which could include
debt, equity,
financing arrangements or other surplus relief transactions.
In my opinion, I don't think holding down
longer -
term rates on the highest - quality
debt will have any impact on lower quality
debts, which is where most of the economy
finances itself.
The key to
long -
term debt resolution lies in your own self discipline and understanding of
finances, and not the capacity to invest in short
term solutions.