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Commercial Lending
| Term | Definition |
|---|---|
| Asset-Based Lending | A type of financing in which the banks analyze profit and loss statements, tax returns, and business plans to make lending decisions based on business income |
| Bridge Loans | A particular form of short-term loan used to cover expenses until long-term financing is in place |
| Commercial Lending | Lending to business enterprises |
| Debt Ratio | The total obligations compared to total income |
| Debt Service Coverage Ratio | This ratio provides a look at a company's overall position. It compares net operating income to the total cost of debt |
| Factoring | A form of asset-based lending in which cash is advanced to a business in exchange for its receivables |
| Loan-to-Value Ratio | A critical ratio in which the principal amount of the loan is divided by the value of the securing property |
| Manufacturers | They build items to sell |
| Merchandisers | They sell goods or services |
| Short-term Loans | A loan that is for a year or less, mostly used for seasonal or cyclical business costs, such as increasing inventory or maintaining the business until predictable receivables arrive |
| Small Business Administration | An organization that offers a number of financial, technical, and management programs to help businesses |
| Term Loans | A loan that finances permanent working capital, equipment, real estate business expansion or acquisition of another business |
Created by:
enix
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