Loan Basics
This type of credit account allows customers to borrow repeatedly up to a set limit.
What is a Line of Credit (LOC)?
A branch that serves customers BOTH in-store AND through digital/online channels — a hybrid model.
What is Physical-Omni (vs. Physical-Branch only)?
Reaching out to prospects who have had NO prior relationship or interaction with us.
What is Cold Calling?
Money collected AFTER a loan has already been charged off — improves the net loss picture.
What is Recovery?
This loan type is paid off in fixed installments over a set period — also called a term loan.
What is an Installment Loan (ILP)?
Unlike a general metric, this is a specific, strategic, measurable indicator tied to business goals.
What is a KPI (Key Performance Indicator)?
The income a branch or company earns specifically from lending activities.
What is Lending Revenue?
This term describes a loan backed by collateral such as a vehicle or property.
What is a Secured Loan?
The ratio of funded loans to total applications or leads contacted — measures sales effectiveness.
What is Close Rate?
The difference between the average loan amount across ALL loans vs. the dollar amount of a single specific loan.
What is AVG Loan Amount vs. Loan Amount?
The total dollar amount of a loan issued to a NEW customer who has never borrowed with us.
What is New Money?
A mindset focused on HOW work is done — routines, habits, and effort — rather than just completing a checklist.
What is a Behavior vs. Task mindset?
Contacting existing or previously engaged customers who already have some familiarity with our brand.
What is Warm Calling?
The total amount of loans written off as uncollectable before any recovery efforts.
What is Gross Charge Off? (PMA)
This is the principal-only portion of what a customer owes — excluding interest and fees — and is considered the "cleanest" signal of real, sustainable loan growth.
What is Customer Principal Balance (CPB)?
This metric counts the total number of new loans originated in a period.
What are Originations?
When a customer's LOC limit is increased to allow higher borrowing — different from opening a brand new LOC.
What is a Stepped LOC Account Increase?
The expense a company pays to borrow or source the funds it then lends to customers.
What is Cost of Funds?
This broader balance-sheet term includes everything owed to the company — principal, interest, fees, and other charges — and can grow even without funding new loans.
What is Accounts Receivable (AR)?