In order to understand how earning potential works, it is first important to understand what earning potential is. Earning potential is the amount of money that a person can earn in their lifetime. This includes money earned from work, investments, and other sources of income. Earning potential is determined by a number of factors, including … Read more
A break fee is a charge assessed by a lender to a borrower for prepaying a loan or terminating a loan agreement early. The break fee compensates the lender for lost interest payments and other costs associated with the early termination of the loan. Break fees are typically stated as a percentage of the loan … Read more
Credit enhancement is a technique used to improve the credit quality of a financial instrument. Credit enhancement can be achieved through a number of methods, including the use of collateral, insurance, or a third-party guarantee. The primary purpose of credit enhancement is to reduce the risk of loss for investors in the event that the … Read more
A documentary letter of credit is a type of letter of credit that requires the presentation of documents proving that the seller has fulfilled their obligations in order for the buyer to receive payment. A fully funded documentary letter of credit is a letter of credit that is backed by funds that have been deposited … Read more
A buy and sell agreement, sometimes called a buyout agreement, is a contract between business partners that stipulates what will happen to the business if one of the partners dies or leaves the business. The agreement typically stipulates that the remaining partners have the right to purchase the departing partner’s share of the business. The … Read more
