Loan Term – The length of time the borrower has to repay debt.
Long Term Debt – Financing used to purchase or improve assets such as plant, facilities, large equipment and real estate.
Maturity – 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.
Multi-Lender Environment – Numerous lending institution sharing the same site and information to provide instant financing to small businesses.
Personal Guarantee -A guarantee that the primary owner will assume personal responsibility for repayment of the loan, should the company not repay the loan.
Prime Rate – The rate a lender charges its best customers. The rate is calculated differently by each lender.
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. Often accessed by check, ATM, or business card.
SBA Loan – Loans to small businesses unable to secure financing on reasonable terms through normal lending channels. The program operates through private-sector lenders that provide loans, which are guaranteed by the Small Business Administration (SBA) — the SBA has no funds for direct lending or grants.
Secured Loan – A loan secured by specific collateral. Creditor may foreclose and seize the specific property that is collateral to satisfy an unpaid secure loan.
Small Business Administration -Established by Congress, the SBA provides financial, technical and management assistance to help Americans start, run, and grow their businesses.
Short Term Debt – Financing used to secure cash for accounts payable and inventory.
Subsequent Draw Fee – It’s a fee that the financial institution may charge each time you use the line of credit after the initial use.
Term Loan – 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.
TransUnion Corporation – One of three leading providers of personal credit information.
Unsecured Loan – A loan granted upon the good credit of the borrower. No collateral involved.
Variable Interest Rate – An interest rate that changes during the life of a loan.
