Terms
A government program designed to help small businesses
Small Business Administration -SBA
Any loan that's available through a nonbank lender
Alternative lending
Is the central bank of the United States
The Fed or the Federal Reserve
The interest rate on your loan does not change over the life of your loan
Fixed rate
an upfront fee charged by a lender to process a new loan application.
Origination Fee
Where a loan or cash advance is approved on top of a loan or advance that is already in place with similar characteristics and payback terms.
Stacking
Loans that are secured by a specific form of collateral, including physical assets, such as property and vehicles, or liquid assets such as cash
Secured Loan
the amount charged on top of the principal by a lender to a borrower for the use of assets
Interest rate
A common strategy to retain customers and increase loyalty,
Renewal Incentive
An individual or financial institution that provides loans to an individual, corporation, or public department in exchange for the principal and interest.
Lender
The net balance of cash moving into and out of a business at a specific time
Cash Flow
Supported only by the borrower's credit worthiness, rather than by any collateral, such as property or other assets
Unsecured Loan
A calculation of the monetary value of an investment versus its cost.
ROI- Return on investment
he process by which your lender verifies your income, assets, debt and property details in order to issue final approval on your loan application
Underwriting
An interest rate on a loan or security that fluctuates over time because it is based on an underlying benchmark interest rate or index that changes periodically.
Any business deduction allowed by the IRS for the purpose of lowering taxable income
Tax write off
a credit facility extended to Buyers/Importers to finance the purchase of goods or services that are to be repaid rapid
Short term loan
the sum of money that is borrowed for a certain period of time and is to be return along with the interest
Debt
All your monthly debt payments are divided by your gross monthly income
Debt Income Ratio
the efficiency or ease with which an asset or security can be converted into ready cash without affecting its market price.
Liquidity
Tracks the amount of profit that remains after a business subtracts all of its costs from its revenue during a specific accounting period, typically monthly, quarterly and annually
P&L Profit & Loss
the ability of the consumer to acquire goods or services prior to payment with the faith that the payment will be made in the future
Credit
An accounting method that lets businesses borrow against their accounts receivable to generate cash quickly
Invoice
Cash on hand, cash on bank deposit, and assets that can be quickly and easily converted to cash.
Liquid Asset
The baseline sum in financial transactions—the initial amount invested or borrowed
Principle