Glossary Of Business Loan Terms

GLOSSARY Of Business Loans Terms Loans Business Credit Card Accounts Receivable Financing Annual Fee A loan gained by borrowing against receivables. Loans are paid down as receivables are collected The amount charged by the lender each year to cover the administrative costs of the loan An amount of money, which a business can borrow against at times it needs capital. Using a card accesses the money Equipment Leases Inventory Financing 100 Leases allowing companies to purchase new equipment Money borrowed on the basis of finished inventory 8 Line of Credit Long Term Debt Maturity An amount of money, which a business can borrow against at times it needs capital Financing used to purchase or improve assets such as plant, facilities, large equipment and real estate A loan's maturity is the life of the loan; that is, how long you have to repay the loan. It usually applies to term loans and not lines of credit Loans 10 Revolving Credit It is the same thing as a line of credit: an amount of money, which a business can borrow against at times it needs capital. Personal Guarantee A guarantee that the primary owner will assume personal responsibility for repayment of the loan, should the company not repay the loan 11 12 13 Secured Loan Secured Loan Term Loan A loan secured by specific collateral. Creditor may foreclose and seize the specific property that is collateral to satisfy an unpaid A loan for a specific amount of money. It has either have a fixed or variable interest rate, matures in between one and ten years and has a set repayment schedule A loan secured by specific collateral. Creditor may foreclose and seize the specific property that is collateral to satisfy an unpaid secure loan. secure loan Source: Designed & Issued In Public interest By http://www.helpwithmybank.gov/ http://www.banking-guide.org.uk| Commercialcapitalplus.com COMMERCIAL CAPITAL PLUS Lending outside the box