Sentences with phrase «tangible assets because»

A debt investor focuses in on companies with solid tangible assets because it provides a better protective foundation for the repayment of the debt's principal in the event a company experiences difficulties or were to go bankrupt.

Life insurance is clearly a tangible asset because it has an expected value mathematically speaking, but many people forget that it also has valuable intangible characteristics.

Not exact matches

First because most companies at the angel round don't have enough tangible assets to secure any debt.

When there's uncertainty in the air and investors become fearful about the economy and major investment markets, we often hear of them flocking to and investing in gold because as a commodity, it's inflation proof as a tangible asset.

Vehicle loans are a secured type of loan because they are backed by a tangible asset.

In an economic environment with steady monetary inflation, taking out a long - term loan backed by a tangible non-depreciating «permanent» asset (e.g. real estate) is in practice a form of investing not borrowing, because over time the monetary value of the asset will increase in line with inflation, but the size of the loan remains constant in money terms.

Car and student loans are an essentially different financial proposition, because you know from the start that the asset will not retain its value (unless you are «investing in a vintage car» rather than «buying a means of personal transportation», a new car will lose most of its monetary value within say 5 years) or there is no tangible asset at all (e.g. taking out a student loan, paying for a vacation trip by credit card, etc).

Real estate is attractive because it's pretty passive — especially if you get a property manager to do your dirty work — it's easy to leverage, the assets are very tangible, and hey, people are always going to need a place to live.

PASSIVE ASSET - real or personal property, both tangible or intangible, that increases or decreases in fair market value because of forces like supply and demand, as opposed to active forces, such as performance or conduct.

Real estate is proving particularly popular largely because it is a tangible asset that people can look at and even visit.