A type of loan where a part or all of the principal is repaid alongside interest during the lifetime of the loan.

A type of loan where the entire principal of the loan is repaid at its maturity. Also known as an interest only loan.

Debt where the security of the loan is specifically tied to an underlying asset. The range of assets that may be used as security can be wide, including property, inventory and trade receivables.

A broad term to describe the proliferation of channels, companies and instruments that have emerged outside the realm of the traditional financial system. It is most commonly associated with companies operating in the peer-to-peer space, such as peer-to-peer lending and crowdfunding. Often called “shadow banking” or “non-bank funding”.

In the wake of House of Fraser’s fall into administration this month, its suppliers have been left with a sizable hole to fill following the restructuring of the department store’s debt. This is one example of a recent glut of household-name retailers failing due to changing market conditions, while the collapse of Carillion earlier this ...