Collateral can lose value, and secured creditors can have competing claims on the same collateral, and foreclosing against collateral can take time and money or be delayed if the borrower files for bankruptcy. Other lenders (including BDC) use personal guarantees as security for loans. “Such a personal guarantee is a moral commitment to repay the

Many traders see their margin wiped out incredibly quickly because of a leverage that is too high. Novice traders should be especially careful when practicing margin trading. A lower leverage means that traders are less likely to wipe dowmarkets out all of their capital if they make mistakes. This is the power of leverage in

In a factoring transaction, the receivables are evaluated regarding their recoverability and a fee is agreed upon between the factor and the seller. The factor then takes over receivables along with all relevant records and pays the cash to the seller after deducting the agreed fee. In addition to this fee, the factor may also retain