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Compensating Balances
Compensating balances are minimum account balances that a company agrees to maintain in a bank account as part of a borrowing arrangement to offset bank service charges or qualify for better loan terms.
Cash Discount
A reduction in the invoice price offered by sellers to buyers for prompt payment of their bill, aimed at encouraging early payment.
Commercial Paper
An unsecured, short-term debt instrument issued by corporations, typically used for financing inventory and accounts receivable.
Coupon Payments
Periodic interest payments made by a bond issuer to its bondholders, usually on an annual or semi-annual basis.
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