Notes whereby collateral acts as the security in case the borrower fails to pay back the note. The most common type is an auto loan, others include short term notes for equipment, mortgage notes, lines of credit used to address receivables or inventory. At closing, not only is a note signed, but a collarateral agreement and a security agreement are signed and attached to the note.
Small business books and manuals explain the formula used to determine whether additional debt increases the return for investors commonly known as return on investment (ROI). I find this laughable in our modern economic […]