Sentences with phrase «company borrows money»

Co-Signing If the company borrows money from a bank, and the owner is asked to co-sign a promissory note, it is important that they fully understand the extent of their personal liability, in case the company defaults.

If a company borrows money to expand and improve its business, higher interest rates will affect the cost of its debtDebt Money that you have borrowed.

The skinny is this: Tribune the company borrows money, and gives it to the ESOP [employee stock ownership plan] to buy up the shares of Tribune.

If the company borrows money a lot, it may need more money again in the future.

(For further reading, see When Companies Borrow Money and Debt Reckoning.)

Most companies borrow money routinely, financing their operations through a mixture of debt and equity (shares sold on the open market) as well as their own cash flows.

Many financial services companies borrow money at short - term rates (for example, paying low savings - account interest rates to their depositors), and lend at long - term rates (for example, through mortgages).

As companies borrow money to expand capacity they compete for capital, pushing up interest rates.

Thus, since debt interest is tax - deductible and debt finance thus initially cheaper than equity finance, companies borrow money until it is almost impossible for them to borrow any more, even in a bull market for their services.

Here's a way to think about it: if the company borrowed money over the intermediate - term from a bank, or floated a bond, what kind of rate would they pay?

Essentially, the companies borrow money to buy mortgage - backed securities, then use those securities as collateral to get more financing to buy still more securities.

Not exact matches

Firstly, because it means higher interest rates — so when companies try to borrow money, that money will become more expensive and as a result they will have less room to give returns to investors.

... I think that creates a lot of positives, and banks are doing well because investors know all these new companies will be borrowing money.»

The low interest rates that the Federal Reserve relied on to kick - start the economy, meanwhile, fed this same dynamic, making it easier for fast - growing companies to borrow money to grow further — and making bond interest look unattractive compared with stock dividends.

He founded the company in 1971 after two tours of duty in Vietnam, with money borrowed from his sisters.

At that point, large private equity buyers begin to enter the picture, because they can purchase the company with borrowed money and use the company's own cash flow to service the debt.

Or maybe because you're not looking to take your existing company to market, borrow money from a bank, sell it or get new investment, you don't need a plan.

And a growing number of companies are borrowing money to fund the repurchases.

Online lending provides more adaptability and flexibility than traditional banks, but you should still provide solid business records that confirm your company is viable and can repay the money you borrow.

Together they are the equivalent of what you current have invested — your money in the company and that which is borrowed.

In India, for instance, a company might have to pay 7 % interest on the money it borrows, so its returns need to be high.

Soon, she realized that someone had deceptively obtained credit cards and borrowed money in her company's name.

The Wall Street Journal wrote that he had «borrowed money and shuffled funds among his companies» in the past.

Alternatively, the trust can borrow money to buy shares, with the company repaying the loan by making contributions to the trust.

The company finances construction by borrowing money from banks or investors or by issuing shares of stock.

A $ 23 - million construction - equipment and - supply company, Albany Ladder specializes in serving carpenters, roofers, and small - time contractors who've never borrowed money from a bank — much less established a history of responsibly repaying it.

Small - business owners often don't adjust their own salaries to match their company's fluctuating cash flow and end up borrowing money to pay themselves, Gustafson says.

«In troubled times like these, public companies turn to the private - equity markets because they don't have the same financing opportunities that they might otherwise possess, either by selling more stock in the secondary markets or by borrowing whatever money they need from banks,» he says.

Strong credit markets give companies borrowing options to boost their stock prices, while making bearish investors scramble to close out trades before losing any more money, both of which then push the stock market even higher and continue the self - reinforcing bullish cycle.

The deceptive company then borrows money to pay for the increased dividend while personally selling shares at the inflated price.

With bond yields so low, it doesn't cost companies much to borrow money to repurchase equity.

And keep in mind that if your company ever wants to borrow money in the future, it's likely that any investor who owns 20 percent or more of the company will have to guarantee the loan personally.

Meanwhile, it's nice to know that after the loan is due, you should have an easier time borrowing money from the venture debt company who still has a vested interest in your company's survival due to the warrants it owns.

A surge in acquisitions by large Chinese companies in recent years has increased worries that several of them, which rely on borrowed money for their large purchases, could pose a risk to the banks that lend to them.

Instead of borrowing money from financial institutions, you can give a slice of your company to investors in exchange for capital.

In all three cases, Mr. Trump had passive investments in limited liability companies that had borrowed significant amounts of money.

The company that borrowed money to purchase assets would show the value of the debt and the asset on its balance sheet.

Leveraged Investment Company - Leveraged Investment Company is a company whose charter allows it to borrow money for investing actiCompany - Leveraged Investment Company is a company whose charter allows it to borrow money for investing actiCompany is a company whose charter allows it to borrow money for investing acticompany whose charter allows it to borrow money for investing activities.

In the United States, it took many months for mortgage defaults to fall after the most recent housing bust — and energy companies are struggling to pay off the cheap money that they borrowed to pile into the shale boom.

W. L. Gore, the maker of Gore - Tex, and Publix Super Markets, which operates in the Southeast, are owned by employee stock ownership plans, wherein a workers» trust typically borrows money to buy shares that are paid out of company revenues.

That can hurt a company's stock price if it's borrowed a lot, as the interest it's paying on that debt is more expensive — meaning more money will be spent paying it down, leaving less for product development, marketing, etc..

It is an investment company that uses borrowed money to acquire securities.

Interest rates can affect stocks because when rates are low, people are more willing to borrow money that they may use to buy products and services, which can help buoy company earnings and stock prices.

Financially parasitized companies use corporate income to buy back their stock to support its price — and hence, the value of stock options that financial managers give themselves — and borrow yet more money for stock buybacks or simply to pay out as dividends.

It's all part of the phenomenon of repressed yields and cheap credit: Companies are borrowing large amounts of money to buy back their own shares and to buy out each other, instead of funding investments in productive activities.

If a person wants to borrow money to buy a car, Company X gives that person the cash, and the person is obligated to repay the loan with a certain amount of interest.

In virtually all stock market companies that have done ESOPs in the last 20 years, the company sets up the ESOP trust, which borrows money to finance the purchase of newly issued shares, and the trust pays the market price on that day for the shares.

In a leveraged buyout, the acquired company is made to borrow the money for its own acquisition and pay those funds to the acquirer, which uses those funds to pay off the bridge loan originally taken out to fund the initial deal.

This phrase explains mechanics of leveraged buyout deals: «In a leveraged buyout, the acquired company is made to borrow the money for its own acquisition and pay those funds to the acquirer, which uses those funds to pay off the bridge loan originally taken out to fund the initial deal.»

A company that has taken on lots of debt to fund expansion will likely have a better P / E ratio than its peers as the money it is borrowing doesn't reduce earnings.