Service Type: Banking & Lending

Intercompany Transactions

Definition: An intercompany transaction is one between a parent company and its subsidiaries or other related entities. Unintended consequences: Intercompany transactions often cause problems with the relationship between a parent company and its bankers and lenders. Reasons why: The reasons are many, but the key issues relate to taking cash and other assets away from... Read more »

Diversification

This article: This article contains some of the concerns banks have regarding the subject of diversification of customers as well as some of the strategic concerns a business owner should consider regarding diversification of banking relationships. Customers: Bankers will look at the diversification of the number and types of customers when considering issuing a line... Read more »

Debt Refinancing

Definition: In debt refinancing, a borrower applies for a new loan or debt instrument that has better terms than a previous contract and can be used to pay down the previous obligation. An example of a refinancing would be applying for a new, cheaper loan and using the proceeds from that loan to pay off the liabilities... Read more »