143 TERMS & ABBREVIATIONS
Commercial finance glossary
Searchable, plain-English explanations of frequently used terms in business lending, commercial real estate and financial analysis.Lending
APRAnnual Percentage Rate→AmortizationAmortization→Balloon PaymentBalloon Payment→GuarantorGuarantor→PGPersonal Guarantee→CollateralCollateral→UCCUniform Commercial Code Filing→First LienFirst-Priority Lien→Second LienSecond-Priority Lien→CovenantLoan Covenant→DefaultDefault→MaturityLoan Maturity→PrincipalPrincipal→Interest RateInterest Rate→Fixed RateFixed Interest Rate→Variable RateVariable Interest Rate→Origination FeeOrigination Fee→Prepayment PenaltyPrepayment Penalty→RecourseRecourse Loan→Down PaymentDown Payment→
Banking
Markets
BPSBasis Point→PrimePrime Rate→SOFRSecured Overnight Financing Rate→SpreadCredit Spread→CMBSCommercial Mortgage-Backed Securities→GSEGovernment-Sponsored Enterprise→FedFederal Reserve System→Yield CurveYield Curve→Treasury YieldU.S. Treasury Yield→HedgeHedging→Rate CapInterest Rate Cap→SwapInterest Rate Swap→
Real Estate
Cap RateCapitalization Rate→LTVLoan-to-Value Ratio→CLTVCombined Loan-to-Value Ratio→NOINet Operating Income→Yield MaintenanceYield Maintenance→DefeasanceDefeasance→Non-RecourseNon-Recourse Loan→Carve-outsNon-Recourse Carve-outs→Bridge LoanBridge Financing→Construction LoanConstruction Financing→Permanent LoanPermanent Financing→Mezz DebtMezzanine Financing→LTCLoan-to-Cost Ratio→Debt YieldDebt Yield→CMBS LoanCMBS Financing→
Underwriting
DSCRDebt Service Coverage Ratio→Current RatioCurrent Ratio→Quick RatioQuick Ratio→D/EDebt-to-Equity Ratio→DTIDebt-to-Income Ratio→A/R AgingAccounts Receivable Aging→Equity InjectionEquity Injection→ReserveReserve Account→DSRADebt Service Reserve Account→Pro FormaPro Forma Financial Statement→Tax ReturnBusiness Tax Return→Debt ScheduleBusiness Debt Schedule→GCFGlobal Cash Flow→SensitivitySensitivity Analysis→Stress TestFinancial Stress Test→
Accounting
EBITDAEarnings Before Interest, Taxes, Depreciation and Amortization→EBITEarnings Before Interest and Taxes→EBTEarnings Before Tax→COGSCost of Goods Sold→Gross ProfitGross Profit→Gross MarginGross Profit Margin→Net IncomeNet Income→Cash FlowCash Flow→FCFFree Cash Flow→Working CapitalWorking Capital→ROEReturn on Equity→ROAReturn on Assets→CapExCapital Expenditure→OpExOperating Expenditure→A/RAccounts Receivable→A/PAccounts Payable→Inventory TurnoverInventory Turnover→TTMTrailing Twelve Months→YTDYear to Date→P&LProfit and Loss Statement→Balance SheetBalance Sheet→CFSCash Flow Statement→GAAPGenerally Accepted Accounting Principles→CPACertified Public Accountant→AuditFinancial Statement Audit→ReviewReviewed Financial Statements→CompilationCompiled Financial Statements→DepreciationDepreciation→D&ADepreciation and Amortization→
Finance
Investing
Corporate Finance
Business Finance
ABLAsset-Based Lending→Borrowing BaseBorrowing Base→LOCLine of Credit→RevolverRevolving Credit Facility→Term LoanTerm Loan→Working Capital LoanWorking Capital Financing→FactoringInvoice Factoring→Invoice FinanceInvoice Financing→MCAMerchant Cash Advance→Factor RateFactor Rate→Bank StatementBank-Statement Financing→