credit controlls
credit controlls
Debt Covenants
credit controlls
credit controlls
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Restrictions placed on a company by creditors are referred to as "covenants." These covenants can be financial or operational in nature and are typically outlined in loan agreements or bond indentures. They are designed to protect the interests of creditors by ensuring that the company maintains certain financial ratios, limits additional borrowing, or adheres to specific operational practices. Breaching these covenants can lead to penalties or accelerated repayment demands from creditors.
Business activities refer to economic activities such as promoting, investing buying and purchasing of an organization or a company.
money owed by the company
Bonds are a form of debt when a company sells them to creditors
Cash paid to creditors represents the outflow of funds used to settle outstanding debts or obligations owed to suppliers, lenders, or other financial institutions. This payment reduces the company's liabilities and is typically recorded in the financing or operating activities section of the cash flow statement. It reflects the company's commitment to maintaining good relationships with its creditors and ensuring financial stability.
When company purchases materials from different vendors on credit, those combined creditors are called sundry creditors.
Yes, bondholders are considered creditors in a company's financial structure because they have lent money to the company and expect to be repaid with interest.