Business & Finance
The original amount of money borrowed or invested, excluding interest.
Principal
Anything of value that a person or company owns or controls.
Asset
A person or organization that owes money to another party.
Debtor
The cost of borrowing money or the income earned from lending or saving it.
Interest
The value remaining in an asset or business after subtracting its liabilities.
Equity
A banking facility that allows a customer to withdraw more money than is available in their account, up to an agreed limit
Overdraft
A portion of a company's profits distributed to its shareholders.
Dividend
Financial obligations or debts that a person or business must pay.
Liabilities
Money given for a specific purpose, usually without requiring repayment.
Grant
The date on which a loan must be repaid or a financial instrument reaches the end of its term.
Maturity
A person or business that lends money in exchange for a valuable item that may be sold if the loan is not repaid.
Pawnbroker
A business project or activity that involves risk and the possibility of profit.
Venture
An asset pledged to a lender as security for a loan.
Collateral
How easily an asset can be converted into cash without significantly losing its value.
Liquidity
A person or organization that is owed money by another party.
Creditor
An instruction to a bank to make regular, fixed payments automatically to a specified recipient.
Standing order
The profit or loss earned on an investment over a period of time.
Return
A legal process for individuals or businesses that cannot repay their debts.
Bankruptcy
The income an investment generates, usually expressed as a percentage of its price or value.
Yield
statement
A person who lends money illegally, often charging extremely high interest rates.
Loan shark
The extent to which a company uses debt financing compared with equity financing.
Gearing
The process of selling a company's assets to pay its debts, often when it closes down.
Liquidation
A tradable financial instrument, such as a share or bond, that represents an investment or financial claim.
Security
An independent examination of financial records to check their accuracy and compliance with relevant rules.
Audit