It is a short term facility to withdraw money from a current bank account with zero credit balance. It is limited to an extent of borrowing limit which is decided by the commercial bank. Interest is charged depending on the amount of money borrowed.

It is a letter from one bank to another bank (used in international trade) guaranteeing that a buyer’s payment (of a certain amount) to a seller will be given on time. In a situation where the buyer is unable to make the payment, the bank will be covering the full or remaining amount of purchase.

It is a type of guarantee or a promise from a lending institution or a bank which ensures that the debtor’s liabilities would be met. If the person is unable to repay, the bank covers his debts.

at a fixed rate of interest over the tenure of a loan. Converting high interest housing loans to low interest housing loan enables a customer to acquire benefits like reduced monthly instalments on the loan. These two options are available during the transfer of loan.

Leading consulting and advisory firms guide clients through all stages of a merger & acquisition process (cross-industry or cross-border deals). These firms have a team of experts who work towards the success of the deal right from the beginning itself. The bigger companies in this business have imprinted globally which helps in identifying suitable targets.

The ECB is the financial instrument used to borrow money from the foreign financing sources to invest in the commercial activities of a domestic country. Hence, borrowing money from the non-residential lenders and investing it in the commercial activities of the country is known as external commercial borrowings.

A capital lease is a contract entitling a renter to the temporary use of an asset, and such a lease has the economic characteristics of asset ownership for accounting purposes. The capital lease requires a renter to book assets and liabilities associated with the lease if the rental contract meets specific requirements.

It is a tax raised on capital gains or profits from the sale of assets. This tax is calculated as the positive difference between the sale price and the original purchase price of the asset. Capital gains taxes are only triggered when an asset is released, not while it is held by an investor.

It is a tax that the government imposes on the income generated by a business or an individual within their jurisdiction. By law, taxpayers must file an income tax return annually to determine their tax obligations. Income taxes are a source of revenue for governments.

On the face of it, the concept of an insurance business is pretty straightforward. An insurance firm pools together premiums that customers pay to offset the risk of loss.

Liquidation value is the total worth of a company’s physical assets when it goes out of business or if it were to go out of business. Liquidation value is determined by assets such as real estate, fixtures, equipment and inventory. Intangible assets are not included in a company’s liquidation value.

It is the action of an organization or government selling or liquidating an asset or subsidiary. Excluding the sale of an asset, disinvestment also refers to capital expenditure reductions, which can facilitate the re-allocation of resources to more productive areas within an organization or government-funded project.

In insolvency proceedings, a liquidator (some who sorts the affairs of a firm) appointed by the court liquidates the insolvent’s assets and pays off the proceeds to the creditors. There are separate insolvency resolution processes for companies and individuals. A time limit for completion is set up for corporate sectors.