Debt Financing Module
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These flashcards cover key concepts related to debt financing, including definitions and essential terms.
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8 Terms
Long-term note payable
An obligation a company has when it borrows money from the bank for longer than a year.
Interest
The cost of borrowing money, typically expressed as a percentage of the loan amount.
Principal reduction
The portion of a loan payment that goes towards paying down the original loan balance.
Amortization table
A schedule that details each loan payment, showing the breakdown of interest and principal reduction.
Loan balance
The remaining amount of money owed on a loan after certain payments have been made.
Repayment schedule
The structured timeline outlining when and how loan payments will be made.
Payment
The amount of money paid in a regular interval to repay a loan.
Debt Financing
The process of raising funds for business activities by borrowing.
Note 
Flashcards (29)