Sentences with phrase «purchase on borrowed money»

Not exact matches

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.

The institutions are not only using the money to meet their own short - term financing needs, they are also borrowing additional money to purchase the bonds of troubled countries and earn the spread between the yields on those bonds and the much lower rate the ECB is charging them for money.

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

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.

When you buy stock on margin, you borrow money from your stock broker to cover the purchase price.

When borrowing is cheap, firms will take on more debt to invest in hiring and expansion; consumers will make larger, long - term purchases with cheap credit; and savers will have more incentive to invest their money in stocks or other assets, rather than earn very little — and perhaps lose money in real terms — through savings accounts.

They tried to persuade me to purchase a pricey marketing package by suggesting me to borrow money from family and friends or put it on a credit card.

Your payment history on credit will greatly influence the terms under which you can borrow money to purchase a home.

If this sounds impossible after all the cash you're planning to pour into your home purchase, shoot for keeping at least 10 % of your annual income in savings, and come up with a back - up plan if you need more, like borrowing from friends or family or withdrawing past contributions from a Roth IRA if you have one (you'll pay no tax or penalty on that money).

If you don't have cash on hand at the moment, swiping your card for your purchases is a way of borrowing money from the issuer until the time comes to pay the bill.

For the people that need to borrow money to purchase a car, that is the definition of being upside down — sometimes referred to as having «negative equity» — on an automobile loan.

Bad debt, on the other hand, means borrowing money to buy a car you can't actually afford or racking up high - interest credit card bills to purchase expensive items you really don't need.

When you can not pay off the full balance on a credit card every month, you not only pay for an unnecessary purchase, you pay interest rates of between 12 % and 24 % on the money that was borrowed.

If you have no credit, slow credit, or even horribly bad credit, you may have difficulty borrowing the money you need to make purchases, catch up on bills,...

After that he purchased a Corvette on payments and then borrowed some more money from the bank to buy a motorcycle and snowmobile.

If you are set on purchasing or refinancing a specific car, but your LTV is too high to receive an approval, then your lender may ask you for a down payment that will reduce the amount of money you need to borrow, bringing down your LTV.

You can also borrow money to adopt a child, purchase an engagement ring, or take out «green loans», which enable you to finance systems that are based on renewable energy.

Stock buybacks happen as companies either borrow money or deploy excess cash flows to purchase their own shares on the open market.

The borrowed money has to be used to either purchase or refinance the debt on the employee's home.

And that's not all... those payments you are making on the interest (using income from the investments you purchased with borrowed money) come back to you from the government every year!

Responsible borrowing is money you spend on important purchases or services, that charges you a fixed rate, that you can afford to pay back, and that carries a moderate interest charge.

Borrowing money or purchasing items on credit is the only way to build your rating, but be careful.

But without any emergency savings, you'll likely end up borrowing money from family and friends, neglecting your existing payment obligations, or putting purchases on a high - interest credit card, all of which can drive you into debt.

Remember, too, that the VA loan limits don't represent a cap on your purchasing power — rather, they help determine how much you can borrow before needing to put money down.

Since the financial crisis in 2008, the federal government has introduced stricter rules on banks» mortgage lending policies requiring higher down payments when purchasing a house which have made it more difficult for some homeowners and developers to borrow money.

Just make sure you're not borrowing more money than you need or wasting it on unnecessary purchases.

ETFs can also be purchased on margin by borrowing money from a broker.

With some credit cards offering 0 % on purchases for up to two years or even longer, you can essentially borrow money for free as long as you clear the balance before the interest - free period ends.

So if you borrow money to purchase stocks, bonds or an investment property, you may be able to claim the interest on that loan to reduce your taxable income.

Purchasing equipment, inventory, supplies or other necessary items are allowable business deductions in and of themselves, and so is the interest paid on the money that is borrowed to purchase them.

When you borrow money — whether it is in the form of charging purchases on a credit card or a new home mortgage — the law allows your creditors to take certain lawful actions when you fail to make your payments including, but not limited to, reclaiming the items that still have unpaid balances.

If you need a loan for less than $ 50,000, consider finding an alternate source of funding — or maybe even borrowing from a family member or friend, or waiting to make your purchase so you can save up the money you'd be spending on mortgage payments and pay cash instead.

The interest on money you borrow to go on vacation, or to purchase any good for personal use, is generally not tax deductible.

Much of the attention has been focused on the management and limitations on money borrowed to finance the purchase of homes.

For example, buying on margin would be borrowing money to purchase a security or other asset such as a cryptocurrency.

With cryptocurrencies trending in popularity, it seems that many investors are purchasing bitcoin on borrowed money — credit cards and loans that bear interest.

Also, the loan - to - value ratio is based on the appraised value and helps lenders figure out how much money may be borrowed to purchase the property and under what terms.

Your money can, in some cases be borrowed funds if the funds borrowed are not connected with the the transaction, this is having the capacity to purchase on your own.

So, if you purchase a property using 80 % borrowed money and 20 % cash, the cash on cash return metric only uses the 20 % cash as the denominator.

In part because of President Obama's tough regulations that cracked down on the most reckless practices from the housing crisis, responsible Americans can feel more confident and secure when they borrow money to purchase their own home.