Need a Term Explained?
Find some common financing and commercial loan terms here.
Need a Term Explained?
Find some common financing and commercial loan terms here.
Terms A – C
- Accounts Receivable
- Money a company is owed by its customers, because the company provided products or services.
- Accounts Payable
- Money a company owes its vendors or creditors to pay for products or services the company received.
- Arrears
- A situation when a payment is owed, or has not been paid.
- Asset
- The money, equipment, and payments due, which allow a company to conduct business. The opposite of a Liability.
- Asset-Based Lending
- A business loan, or line of credit, that uses a company’s accounts receivable or inventory as collateral.
- Cash Flow
- The total amount of money that passes in and out of a company as it conducts business.
- Collateral
- The property or assets that secure a loan.
- Credit Facility
- The maximum size of assets that your company can borrow against.
- Creditworthy
- Being worthy of credit because of property, money, or a history of repaying credit on time.
- Creditor
- A company that is owed money.
TERMS D-I
- Debt Collection
- The collection of outstanding debts collected by one company for another.
- Default
- Failing to pay back a loan.
- Flat Fee
- A set price charged for products or services. The price doesn’t change, no matter how much the customer takes or uses.
- Interest
- The price a borrower pays to maintain a loan.
- Inventory
- Supplies and products that a company holds before they are sold to customers. Considered an asset for the company.
- Inventory Financing
- Using a company’s inventory as collateral for a business loan, or line of credit.
- Invoice
- A document that outlines the transaction between a company and client. It shows the amount that the customer owes.
- Invoice Factoring
- Using a company’s invoices as collateral for a business loan, or line of credit.
TERMS L-V
- Lien
- The right to keep or sell the collateral for a debt or loan, when the debtor defaults.
- Liability
- Money or debt owed by a company. The opposite of an Asset.
- NOLV
- Net Orderly Liquidation Value
- Outstanding
- An invoice or debt that has not been paid.
- Overdue
- Debts, invoices, or accounts payable that are not paid on time.
- Security Interest
- A claim or lien that grants a lender security interest in the collateral for a debt or loan.
- Underwriting
- To understand the risk for a debt, based on the history of the borrower.
- Vendor
- A company offering goods and services for sale to a company.
MORE OPTIONS FOR YOUR BUSINESS
SLR Business Credit’s loans provide a way to get value from your assets, especially when you cannot obtain sufficient bank financing. And your financing can be customized to suit your exact cash flow needs, from the following options: