What is the difference between a guaranteed return and a guaranteed return? Most investors do not distinguish between a guaranteed return and…
What is the difference between a guaranteed return and a guaranteed return?
Most investors do not distinguish between guaranteed return and guaranteed return, similar words with completely different meanings to the investor.
When an entrepreneur gives a guaranteed return on a loan to build a project, it is a fixed interest rate and is known in advance on equity for a specified period. Interest will be paid until the end of the period regardless of the project's success and at the end of the period the fund will be fully repaid to the investor.
In securing the return of the developer, the projector promises a% return on presentations but note that The return is not guaranteed in the agreement. Yield expectations may be fulfilled, but the investor must realize that 0% profit can also be completed.
In addition, the collateral on the equity should be checked because, beyond the guarantee of return, is there also a risk on the equity?
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