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A fixed rate is a type of security under which a property or an asset consisting of equipment is used as security for the business loan. If you fail to repay the loan in accordance with the terms under which it has been granted, the asset in question is forfeit.

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Difference between a floating charge and a fixed charge?

fixed and floating charge


What is s fixed charge for borrowing money usually a percentage of the amount borrowed?

A fixed charge for borrowing money, commonly referred to as interest, is a predetermined percentage of the principal amount borrowed. This percentage remains constant throughout the loan term, meaning the borrower pays the same rate regardless of changes in market conditions. This fixed interest charge ensures predictable repayment amounts, allowing borrowers to budget effectively.


What Does The Term Floating Charge Mean?

A floating charge is a type of security under which all the assets of the business, apart from the ones which are subject to a mortgage or fixed charge, are used as security for the business loan.


What advantage does the fixed charge coverage ratio offer over simply using times interest earned?

The fixed charge coverage ratio measures the firm's ability to meet all fixed obligations rather than interest payments alone, on the assumption that failure to meet any financial obligation will endanger the position of the firm


What is a fixed charge for borrowing money usually a percentage of the amount borrowed?

A fixed charge for borrowing money, often referred to as an interest rate, is a predetermined percentage of the principal amount borrowed. This charge remains constant throughout the life of the loan, meaning the borrower pays the same rate regardless of changes in market conditions. It is typically expressed as an annual percentage rate (APR) and is used by lenders to calculate the total cost of borrowing over the loan's term.

Related Questions

Difference between a floating charge and a fixed charge?

fixed and floating charge


Which fixed asset their no charge depreciation?

Land is the only fixed asset which has no depreciation charge because land does not depreciate it's value.


What is Cash flow to Fixed-Charge Ratio?

cash generate from normal course of business that able to cover the fixed charge such as lease and interest expense


What would be the total cost if you have a fixed charge of -15?

If you have a fixed charge of -15, the total cost would be 15 units less than the original cost.


When a drive in movie there is a fixed charge for the driver and one passenger and an extra charge for each additional passenger if six people are in the car the total charge is 8.00 if 3 people are?

1.25 for extra passenger and 3 for the fixed


Advantage of fixed charge?

An advantage of a fixed charge is that a payment will be the same from one month or week to the next. This helps businesses plan for the future based on actual cash outflow.


If a firm has both interest expense and lease payments would times interest earned be smaller than fixed charge coverage?

times interest earned be smaller than fixed charge coverage


What parts of an atom has a negative charge?

The electron that are revolving around the atom in a fixed path is having negative charge.


Can the charge on an electron be changed?

No. The charge on the electron is fixed at -1 (which is also equal to 1.602177 x 10-19 Coulombs).


Which element has a variable charge Mg Mn Al Ag?

Manganese (Mn) is the element out of the ones listed that commonly exhibits variable charges. Magnesium (Mg), Aluminum (Al), and Silver (Ag) typically have fixed charges in their common compounds.


What is the meaning of fixed cost in economics?

the cost which is not change with production fixed cost example rent of factory , employee salaries in case of manufacturing unit , fixed electricity charge etc.


How do you charge for making curtains?

You could charge at fixed 2m length, and RMB 30~50per meter width according to the material.