Glossary

Business finance terms, defined in one sentence.

Every term on this page starts with a plain definition, then a worked example. If a lender or broker uses a word you do not recognise, it is probably here.

A B C D E F G H I L M N O P R S T U V W

A

AFCA APR ATO integrated client account Accounts receivable Advance rate Aggregator Amortisation Asset age at end of term Australian Credit Licence

B

BAS Balloon payment Break costs Brokerage fee

C

Cash flow forecast Chattel mortgage Commitment schedule Comparison rate Conditional approval Credit enquiry Credit score Cross-collateralisation

D

Dealer sale Debt consolidation Depreciation Director penalty notice Director's guarantee Disclosed and confidential facilities

E

Early payout Effective life Encumbrance Equity release Establishment fee

F

Factor rate Finance lease Fixed and variable rates Full-doc finance

G

GST on an asset purchase General security agreement

H

Hard and soft credit enquiries Hire purchase

I

Instant asset write-off Interest-only Invoice discounting Invoice factoring

L

LVR Lease-doc finance Lender panel Line fee Low-doc finance

M

Master facility agreement

N

NCCP Act Novated lease

O

Off-the-plan Operating lease

P

PPSR Payment arrangement Personal guarantee Pre-approval Private sale Progressive draw

R

Redraw Refinance Revolving facility

S

SMSF loan Sale and leaseback Serviceability Settlement

T

Tax invoice Temporary full expensing Term loan Trail commission

U

Undrawn fee Unencumbered asset

V

Valuation

W

Working capital