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Aspiring Lawyers - Applications & General Advice
Applications Discussion
TCLA Vacation Scheme Applications Discussion Thread 2024-25
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<blockquote data-quote="Amma Usman" data-source="post: 200669" data-attributes="member: 36740"><p>Hey there! I’ve made a short post on these to help:</p><p></p><p><strong><u><em>WHAT IS DEBT FINANCING AND A LEVERAGED BUYOUT?</em></u></strong></p><p></p><p>Imagine you want to buy a really expensive bike, but you don’t have enough money. You could save up for years, or you could borrow money from the bank to buy it now. </p><p></p><p>Debt financing is when you borrow money to pay for something big, like your bike, and then you promise to pay it back later, little by little, with extra money called "interest" (which is like a fee for borrowing). </p><p></p><p>Now, let’s say you don’t just want a bike…. you want to buy a whole bike shop! But you don’t have enough money. A leveraged buyout (LBO) is when you borrow a lot of money (debt financing) to buy the shop. You use the shop’s own money (its profits) to help pay back the loan over time. It’s like buying a shop mostly with borrowed money and then using the shop’s earnings to repay what you borrowed. </p><p></p><p>But be careful! If the shop doesn’t make enough money, you might struggle to pay back the loan. That’s why LBOs can be risky.</p><p></p><p><img src="https://media4.giphy.com/media/eoX4WvfIOfuSc/200.gif" alt="debt GIF" class="fr-fic fr-dii fr-draggable " style="" /></p></blockquote><p></p>
[QUOTE="Amma Usman, post: 200669, member: 36740"] Hey there! I’ve made a short post on these to help: [B][U][I]WHAT IS DEBT FINANCING AND A LEVERAGED BUYOUT?[/I][/U][/B] Imagine you want to buy a really expensive bike, but you don’t have enough money. You could save up for years, or you could borrow money from the bank to buy it now. Debt financing is when you borrow money to pay for something big, like your bike, and then you promise to pay it back later, little by little, with extra money called "interest" (which is like a fee for borrowing). Now, let’s say you don’t just want a bike…. you want to buy a whole bike shop! But you don’t have enough money. A leveraged buyout (LBO) is when you borrow a lot of money (debt financing) to buy the shop. You use the shop’s own money (its profits) to help pay back the loan over time. It’s like buying a shop mostly with borrowed money and then using the shop’s earnings to repay what you borrowed. But be careful! If the shop doesn’t make enough money, you might struggle to pay back the loan. That’s why LBOs can be risky. [IMG alt="debt GIF"]https://media4.giphy.com/media/eoX4WvfIOfuSc/200.gif[/IMG] [/QUOTE]
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Aspiring Lawyers - Applications & General Advice
Applications Discussion
TCLA Vacation Scheme Applications Discussion Thread 2024-25
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