A type of loan where a part or all of the principal is repaid alongside interest during the lifetime of the loan.
Amortising Loan
in Definitions.
in Definitions.
A type of loan where a part or all of the principal is repaid alongside interest during the lifetime of the loan.
in Definitions.
A type of loan where the entire principal of the loan is repaid at its maturity. Also known as an interest only loan.
in Definitions.
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.
in Definitions.
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 Definitions.
The ratio between debt and EBITDA. Leverage can either be "gross" (gross debt to EBITDA) or "net" (net debt to EBITDA). Often lenders will remove extraordinary items from EBITDA when calculating leverage
in Definitions.
In the context of a loan, this informal expression typically refers to the total costs of the loan, including the interest expense, fees and any other payments due to the lender. It would normally also account for the time-value of money (payments made in the short term are worth more than those made at a ...
in Definitions.
This association was created to assist the development of the secondary loan market in Europe. It intends to develop best practice and standard documentation. LMA Documentation is used as a starting point in many loan discussions.
in Definitions.
A measure of the value of a loan to the collateral against which it is secured. A €30million loan secured by a €50 million property would be described as a 60% LTV loan.
in Definitions.
Debt that ranks below senior bonds or loans but above common equity. Junior Debt instruments are often called mezzanine loans but can also be structure as preferred equity.
in Definitions.
A similar source of funding to factoring, invoice discounting maintains the relationship between buyer and seller, with the collection of the cash remaining the responsibility of the company.