Finance Terms

In this post, we are going to take a look at a niche, and often overlooked form of financing – the Chattel Mortgage. While Chattel Mortgages are limited in their suitability they nevertheless form an essential part of the lending canon when it comes to certain asset classes – let’s get started.   What Is […]

Overcapitalization It is a financial situation where a company has more than enough total capital as compared to the needs of its business operations. In case of overcapitalization, the total equity (owner’s capital + debt) of a company exceeds the actual worth of its assets. An overcapitalized company may often be burdened by interest payments or […]

Undercapitalization It is a financial situation where a company doesn’t have enough capital or reserves as compared to the size of its operations. Undercapitalization is often seen with new companies, it is a result of inadequate planning of funds for future growth. Even larger corporations with struggling operations and huge debts may be undercapitalized. An […]