Accounts Receivable Financing – A loan gained by borrowing against receivables. Loans are paid down as receivables are collected.
Annual Fee – The amount charged by the lender each year to cover the administrative costs of the loan.
Business Credit Card – An amount of money, which a business can borrow against at times it needs capital. Using a card accesses the money.
Commercial Real Estate Loans - Similar to residential mortgages, but collateral is business property. Interest rates are usually fixed, the length of the loan can range from 5 – 20 years and payments due monthly.
Commercial Term Loans – Loans made to businesses that can be either secured and unsecured. Usually made to mid-size and large businesses.
Credit Rating – A predictor of the ability to pay back a loan. The credit rating is a result of credit scoring
Credit Report – Financial history supplied by a credit information company like Dun and Bradstreet, Equifax, Experian or TransUnion. Contains credit information on a business or an individual, including payment history of bank cards, store cards, mortgages, student loans, and trade payments.
Credit Scoring – The evaluation system used by lending institutions to determine relative credit riskiness of a business or consumer. When evaluating businesses, it generally considers factors such as credit payment history, new credit sought by owner of business, and financial strength and longevity of business.
CreditFYI – A web site for checking business credit reports
Debt Financing – A loan with pre-agreed terms, including payback schedule and interest.
Dun & Bradstreet – Leading provider of business credit information.
Equifax – One of three leading providers of personal credit information.
Equipment Leases – Leases allowing companies to purchase new equipment.
Experian – One of three leading providers of personal and business credit information.
Fixed Interest Rate – An interest rate that is the same throughout the life of a loan.
Interest Rate – The amount charged by a lender for the money borrowed. It can be fixed or variable.
Inventory Financing – Money borrowed on the basis of finished inventory. The loan is paid as inventory is sold.
Line of Credit – An amount of money, which a business can borrow against at times it needs capital. Often accessed by check, ATM, or business card.
