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Can I Increasingly Draw Down Business Loan With Fixed Interest Rate?
MaryLinda02
A business loan with variable rate of interest would better suit this purpose. You cannot increase the principal balance of the Business Loan having a fixed interest rate throughout the fixed rate of interest period. If several drawing is needed as the rates are fixed for time, break costs might be incurred.
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∙ 8y ago
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What effect do low interest rates have on business investment?
The effect that low interest rates have on business investments is a low return. The low return will affect the profits of a business. It will also slow down business investments.
What happen to the average fixed cost curve when there is a reduction in business property taxes?
It will shift down.
How does a fixed rate mortgage differ from an adjustable rate mortgage?
The interest rate on a fixed rate mortgage does not change over the life of the loan. An adjustable rate mortgage interest rate may change up or down depending on what the interest rates are, at the contracted time the loan is reviewed.
Do fixed bonds have higher rates than bonds with fluctuating interest?
Fixed bonds don't necessarily have higher rates than bonds with fluctuating interest. An interesting feature of bonds is that their rates tend to go down as interest rates in general go up. A fixed rate bond will yield the same return no matter what the economy does, but a fluctuating interest bond's rate could go up if the general interest rate goes down or vice versa. So really, the important determining factor of which type of bond performs better is the economy in general.
Why should someone get a 10 year fixed rate mortgage?
A 10 year fixed rate mortgage has a couple of advantages. One advantage for the consumer is they can lock in a set interest rate while rates are low thus protecting them from potentially higher interest rates down the line. Ten year loans also have the distinction of being one of the cheapest fixed rate loans since borrow time is so short the principle is paid down rapidly.
Do female cats calm down after being fixed?
yes female start to calm down when you get her fixed but if you have a male to you should get him fixed to or the female won't settle down that easily
What is a 'back to back' business between companies?
"Back to Back" business can refer to an "interest swap" arrangement that some businesses and hedge funds utilize to minimize risk. To understand a "back to back" interest swap you must first understand how and why a regular interest rate swap works. Interest swaps involve two parties. One party signs the contract as a "hedge" or insurance to protect themselves from loss, and the other party is a speculator/investor hoping to capitalize if things go their way. A plain interest swap works like this; Party A is a bank who collects interest on it's loans at a fixed rate. This bank also pays interest to it's depositors at a variable rate that goes up and down. Depending on how interest rates go the bank could come out way ahead or fall behind. So to stabilize this they utilize an interest swap contract. The bank would offer to pay an investor (party B) a fixed interest payment on a dollar amount agreed upon by the two parties. This is the point most people get confused. There is no loan to anyone here, there is only an agreement to pay an interest rate on a specific dollar amount. Party A will pay a fixed interest rate to party B. In turn party B will pay party A a "variable" interest rate; usually based on the federal funds rate or the LIBOR plus a premium. So party A is paying a known amount to party B and party B is paying an unknown amount to party A. If interest rates go up than party B is going to loose out but if interest rates go down, below whatever fixed rate they have agreed upon than he comes out ahead. Party A wins regardless really because the main motivation for party A was to be able to collect a variable interest rate, because that's what it must pay it's customers with. It has in effect simply converted the fixed interest it collects on mortgages and auto loans to a floating variable interest by transferring the risk to an investor. This brings us to the "Back to Back" business. Using the above scenario let's say that party B isn't 100% sure interest rates will go down and cause him to reap a profit. Party B then might engage in further credit swaps to hedge his bet, thus the back to back. Party B could enter in another contract with a party C. In this case instead of being the party paying the variable interest he would offer to pay party C a fixed interest payment and receive an agreed upon variable rate. This "back to back" arrangement doesn't really concern party A or C since there is no actual loaning of money, rather just an agreement or gamble on whether interest rates will go up or down. Remember that if interest rates go down party B wins but if they go up than party B looses. By entering into a back to back arrangement, if interest rates go precipitously down than party B won't loose everything because of his arrangement with party C. Conversely, this contract will cut into party B's profits if interest rates go down; but that's the nature of insurance, to protect yourself from loosing everything. These contracts usually involve very large amounts of money and involve very small variations in interest rates; far less that 1 percent.
Who would benefit from a fixed annuity?
Fixed annuities have a guaranteed interest rate for a set time period. So, if interest rates go up and you are locked into a rate you are the loser. But the reverse can also work, if rates are high and rates go down, the annuity has to pay you the rate for the life of the time period. So, either the person or financial group could be the loser depending upon what happens to interest rates.
How do interest rates affect the price (Value) of bonds?
Yields and Price for bonds are inverse. So when price goes up yield goes down. When price goes down , yield goes up. The coupon always remains fixed.
Will debt consolidation through my bank help me pay down my debt faster and pay less interest?
This really depends on your situation. Generally, debt consolidation loans will put you on a fixed payment plan and will keep your interest down. If you have high interest debt and can consolidate at a lower rate you should absolutely do it. Not necessarily. It probably will not help you any more or less then going through a regular consolidation company.
What is the disadvantage of a fixed pulley?
the disadvantage of a fixed pulley is not to push it down and up
What is the disadvantage of fixed pulleys?
the disadvantage of a fixed pulley is not to push it down and up
