A to Z
Business Finance Glossary
Every business lending term in plain English, from add-backs and balloon payments to caveats, LVR, PPSR and working capital.
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A 17
- ABNWhat an ABN is, how its 11 digits work, and why the date it went active quietly decides which business loans you can apply for in Australia.
- Acceleration clauseWhat an acceleration clause means in an Australian business loan, which defaults can trigger it, the notice banks must give, and how to respond if one is used.
- Accounts payableAccounts payable explained: the bills your business owes suppliers, how to work out creditor days, and why lenders look closely at an aged payables report.
- Accounts receivableAccounts receivable is money customers owe your business. Learn how it's recorded, why accrual GST can be due before you're paid, and how lenders measure it.
- ACNWhat an ACN is, how it differs from an ABN, and the three places a lender uses your company number before it approves a business loan.
- Add-backsAdd-backs explained: which expenses lenders put back into your profit to judge what you can repay, the ones they reject, and a worked café example.
- AdministratorAn administrator takes control of a company in voluntary administration. Learn who can appoint one, what powers they hold and how they differ from receivers.
- Aged receivablesAged receivables explained: how the 30, 60 and 90-day columns work, why invoice financiers drop older debts, plus a worked example of a ledger's real value.
- AggregatorWhat an aggregator is in Australian lending, how it shapes which lenders your broker can offer, how commission flows, and its second meaning.
- AmortisationAmortisation has two meanings in business finance: paying a loan down to zero, and writing off intangible assets. Here's how each one shapes a lender's view.
- Annual turnoverAnnual turnover is your total sales over 12 months, before costs. Learn how lenders verify it, the GST trap that skews it, and the ATO's own tests.
- Application feeAn application fee covers a lender's cost of assessing your business loan, and may not come back if you're declined. How to compare it and spot red flags.
- ArrearsArrears means a repayment is overdue. See what happens at 14, 30 and 60 days, how arrears reach your credit file, and how to borrow again once you've caught up.
- AssetAn asset is anything of value your business owns. Here's how lenders sort assets, why book and lending values differ, and which ones carry weight.
- Asset financeAsset finance in plain English: the four structures Australian lenders use, why the PPSR matters, and how one landscaper funded a ute and mower at once.
- Asset-backed lendingAsset-backed lending explained: how property, equipment, invoices and stock become security, how much each supports, and when it beats a cash-flow loan.
- Assignment of debtsAssignment of debts explained: how a business transfers its unpaid invoices to a financier, why the PPSR matters, and what your customers get told.
B 14
- Balance sheetWhat a balance sheet is, how assets, liabilities and equity fit together, and the four lines a business lender reads first when you apply for finance.
- Balloon paymentA balloon payment explained in plain English: how a lump sum at the end cuts your equipment repayments, what it adds to total cost, and how to plan the payout.
- Bank guaranteeA bank guarantee explained: why landlords and head contractors ask for one, how banks secure it with your cash or property, and how it affects borrowing.
- Bank statement lendingBank statement lending explained: how lenders judge a business loan from 6 to 12 months of account data instead of tax returns, and what they flag first.
- BankruptcyBankruptcy in Australia for business owners: who it applies to, what it stops you doing, how long lenders see it, and why companies can't go bankrupt.
- BASWhat a BAS is, what it reports to the ATO, when it's due, and how lenders use your BAS sales figure to verify turnover for low doc business loans.
- BorrowerBorrower meaning in Australian business lending: why the company, trustee or sole trader named on the contract matters, and how it differs from a guarantor.
- Break costsWhat break costs are on a fixed business loan, why they appear when market pricing falls, and how a warehouse owner priced the exit before selling.
- Bridging loanWhat a bridging loan is, how peak debt and end debt are worked out, and a warehouse example showing what an Australian business owes before and after the sale.
- BrokerWhat a finance broker does in Australian business lending, how brokers get paid, which rules cover them, and five questions to ask before you hand over files.
- Business credit scoreA business credit score rates your company or ABN, separate from your personal score. What feeds it, how ATO debt listings hit it, and how lenders weigh it.
- Business overdraftBusiness overdraft explained: what banks ask for as at October 2026, how to size the limit from your quietest months, and the usage that worries lenders.
- Business planA business plan explained for Australian borrowers: what goes in it, when lenders ask for one, the pages a credit team reads, and how to keep it short.
- Buyback clauseWhat a buyback clause means in Australian business finance, from invoices you must repurchase to leaseback deals, with an example of the cash it can cost.
C 32
- CapitalCapital means different things in a loan application, on a balance sheet and at tax time. A plain-English guide to each meaning, with a Perth startup example.
- Capital expenditureCapital expenditure explained: how capex differs from running costs, how the ATO and your BAS treat it, and why lenders want it funded over the asset's life.
- Capitalised interestCapitalised interest explained: how unpaid interest is added to a business loan balance, where bridging and development lenders use it, plus a 12-month example.
- Cash advanceCash advance has three meanings in business finance: card withdrawals, merchant cash advances and invoice advances, plus a boutique's pay-week example.
- Cash flowCash flow explained in plain English: why a profitable business can still run short, how lenders read it in your bank statements, and a worked tradie example.
- Cash flow forecastA cash flow forecast predicts money in and out of your business ahead of time. How to build one, what lenders test and a worked café example.
- Cash flow statementWhat a cash flow statement shows, its three sections, direct vs indirect methods, and a worked example of how a $120k profit became an $86k operating cash flow.
- CaveatWhat a caveat on a property title means in Australia, who can lodge one, how caveat lenders use them as security, and how a caveat is removed after repayment.
- CaveatorA caveator is whoever lodges a caveat on a property title. What a caveator can and can't do, how lapsing differs by state, and a caveat loan example.
- Certificate of titleWhat a certificate of title is, why most Australian states have scrapped the paper version, and what a lender checks instead when your property secures a loan.
- ChattelA chattel is movable property like a ute, excavator or coffee machine. Why it matters for chattel mortgages, the PPSR and fixtures, plus an earthmoving example.
- CollateralCollateral is the asset a lender can claim if a business loan isn't repaid. Learn what counts, why lenders discount its value and how to work out usable equity.
- Commercial loanA commercial loan is credit for business use, not personal spending. See what makes a loan commercial, why the rules differ and the form that decides it.
- Comprehensive credit reportingComprehensive credit reporting explained: the positive data on your credit file, how two years of repayment history affects a business loan, and what to check.
- Concentration limitWhat a concentration limit is, why invoice financiers cap lending against one customer, and a worked example showing how it can shrink the funding you can draw.
- Conditional approvalConditional approval on a business loan explained: the usual conditions, how long it lasts, why valuations upset deals, and how to reach unconditional approval.
- ConsolidationConsolidation in business finance can mean merging debts, combining group accounts or ATO tax grouping. Learn which one your lender means and why it matters.
- Contingent liabilityA contingent liability is a debt that may become yours if an event occurs, like a guarantee being called. See how lenders count them when you apply to borrow.
- ConveyancerA conveyancer handles the legal side of transferring and mortgaging property. What they do in a business loan, how states differ, and when you need a solicitor.
- Corporate trusteeA corporate trustee is a company acting as trustee of a trust. Learn how lenders deal with one, who signs and guarantees, and the trust deed clauses they check.
- CovenantWhat a covenant in a business loan is, the financial and behavioural kinds Australian lenders use, what the Banking Code limits, and what a breach means.
- Credit assessmentCredit assessment explained: what an Australian lender's assessor checks on a business loan, how banks and non-banks differ, and why files stall in credit.
- Credit enquiryA credit enquiry is logged each time a lender pulls your report. How long enquiries stay in Australia, and why a cluster can sink a business loan.
- Credit fileWhat's on an Australian credit file, how long defaults and enquiries stay, how the ATO can list a business tax debt, and how to get a free copy of your own.
- Credit limitA credit limit is the most you can draw on a card, overdraft or line of credit. Learn how lenders set it and why unused limits can shrink your borrowing power.
- Credit policyCredit policy is the rulebook a lender uses to approve or decline loans. What it covers, why it differs between lenders, and what 'outside policy' means.
- Credit scoreWhat a credit score is in Australia, the Equifax bands from 0 to 1,200, what moves your number most, and how much weight business lenders really give it.
- CreditorCreditor explained in plain English: secured vs unsecured, where employees and the ATO sit, and why a lender reads your creditor list before it lends.
- Cross-collateralisationCross-collateralisation means one property or asset secures more than one loan. See how it works in Australian business lending and how to untangle it.
- Current assetsCurrent assets are what your business expects to turn into cash within 12 months. See what counts, what lenders discount, and a hardware store example.
- Current liabilitiesCurrent liabilities are debts your business must pay within a year. Learn what's included, the covenant breach trap, and how refinancing changes them.
- Current ratioThe current ratio divides current assets by current liabilities. Learn the formula, why a café and a builder read it differently, and a worked example.
D 19
- DebentureA debenture is a written promise by a company to repay borrowed money. See its two Australian meanings, why old 'debenture charges' became GSAs, and the risks.
- Debt consolidationDebt consolidation rolls several business debts into one loan. See which debts are worth including, which to leave alone, and how to tell if it really helps.
- Debt service coverage ratioDebt service coverage ratio explained: the formula lenders use, why owner drawings can sink a healthy-looking result, and a worked Australian workshop example.
- Debt-to-equity ratioDebt-to-equity ratio in plain English: how to work it out, why director loans and goodwill change the answer, and an example of a ratio halving on review.
- DebtorWhat 'debtor' means in Australian business: the customers who owe you and you as a borrower, why lenders fund your debtors ledger, and how the ATO can reach it.
- Debtor daysDebtor days explained: the formula, the GST mistake that inflates most owners' figure, and how many dollars each day of faster collection frees up.
- DefaultWhat a business loan default means in Australia: monetary and non-monetary breaches, what lenders can do next, credit listings and the call to make first.
- Default interestDefault interest explained: when it starts, which balance it's charged on, why short-term loans that overrun cost so much, and how to get it reduced or waived.
- Deferred repaymentA deferred repayment pushes a business loan's first instalment back weeks or months. See what happens to the interest in the gap and what it adds in dollars.
- DepositIn business lending, deposit can mean a contract deposit, your cash contribution or money held at a bank. See which one a lender means and how to fund the gap.
- DepreciationDepreciation lowers your taxable profit without costing cash. Here's how the ATO treats it, why lenders add it back, and what it means for equipment security.
- Desktop valuationA desktop valuation prices a property from sales data, with no inspection. Learn when lenders accept one, when they won't, and how it speeds up a secured loan.
- Direct debitA direct debit lets a lender pull repayments from your account on schedule. How the authority works, what a dishonour costs, and why lenders count them.
- Director guaranteeA director guarantee makes you personally liable for your company's loan. What you're agreeing to, why almost every lender asks, and how to limit the exposure.
- Director penalty noticeA director penalty notice makes you personally liable for your company's unpaid PAYG, GST or super. What the 21 days mean and why lodging on time matters.
- Discharge of mortgageA discharge of mortgage takes a lender's security off a property title. Who lodges it, the notice lenders want, and why repaying alone isn't enough.
- DishonourA dishonour is a payment your bank refuses to make, usually for lack of funds. How dishonours show on statements, what they cost, and how lenders read them.
- DrawdownDrawdown is when approved loan funds are actually paid out. What must happen first, how staged drawdowns work on builds, and when interest starts.
- Due diligenceDue diligence means checking the facts before you commit. What buyers verify when buying a business, what lenders check, and the PPSR search to run.
E 9
- Early repaymentEarly repayment means clearing a business loan before its term ends. Why the saving differs by loan type, and the payout clauses to check before you sign.
- EBITDAEBITDA is earnings before interest, tax, depreciation and amortisation. A worked Australian example, how lenders use it to size loans, and what it leaves out.
- EncumbranceAn encumbrance is someone else's interest or claim over your property or equipment. Common types on Australian titles and the PPSR, and why lenders check.
- Equipment financeEquipment finance lets a business pay for machinery, vehicles or tech over time, secured by the asset. The four main structures compared, plus the tax angle.
- EquityEquity means two things in business lending. See how lenders measure property equity and owners' equity, and why usable equity is the number that counts.
- Equity releaseEquity release turns property value into cash without selling. Why the term means two different things in Australia, and how business owners actually do it.
- Establishment feeAn establishment fee is the one-off cost of setting up a business loan. See why it's often taken from your advance and why it bites hardest on short loans.
- Exit feeAn exit fee is charged when you pay out or close a loan. Why the home loan ban doesn't cover business lending, how it differs from break costs, and what to ask.
- Exit strategyIn lending, an exit strategy is your plan to clear a short-term loan in full. See which exits lenders accept, the proof they want, and why a plan B helps.
F 9
- Factor rateA factor rate like 1.3 sets the total repayable on a cash advance or short-term loan. Learn the maths, why the term changes the real cost, and the payout catch.
- FactoringFactoring means selling unpaid invoices to a finance company for most of their value now. See how the money flows, what customers notice and a worked example.
- Finance leaseA finance lease lets a business use an asset for most of its life while the lessor owns it. How residuals are set, how GST works and what happens at the end.
- Financial yearAustralia's financial year runs 1 July to 30 June. How lenders use your FY figures, what 'FY27' means, and why a stale year can slow a business loan.
- First mortgageA first mortgage is the top-ranking loan on a property title, paid first from any sale. How ranking works in Australia and why it changes what a loan costs.
- Fixed chargeA fixed charge ties a loan to specific assets you can't sell without the lender's consent. What it means under the PPSA, and why it ranks so strongly.
- Floating chargeA floating charge covers stock, debtors and cash your business keeps trading with. How it crystallises, its PPSA name, and the priority rules that weaken it.
- FunderA funder is whoever's money is actually lent to your business. It isn't always the brand you dealt with. Why that matters for approvals, title and hardship.
- Funding gapA funding gap is the shortfall between what a purchase or project costs and the money you can raise. How to measure yours and the usual ways owners bridge it.
G 8
- Garnishee noticeA garnishee notice orders your bank or customers to pay your tax debt straight to the ATO. Who can receive one, how long it lasts and how to get it lifted.
- GearingGearing measures how much of a business runs on debt rather than owners' money. Two common formulas, why they disagree, and what lenders read into the result.
- General security agreementA general security agreement gives a lender a claim over your business assets. How a GSA works on the PPSR, what it covers and how it affects later borrowing.
- GoodwillGoodwill is the part of a business's price you can't touch. See how it's calculated when buying a business, how lenders view it and how to fund it.
- Gross profitGross profit is sales minus the direct cost of those sales. See the formula, a worked tradie example, and why a slipping gross margin worries lenders.
- GSTGST is the 10% tax on most Australian sales. Learn who must register, how it flows through your BAS, and why lenders and loan costs treat it differently.
- GuaranteeIn lending, a guarantee is a promise to cover a debt if the borrower can't. The five kinds business owners meet, from director guarantees to bank guarantees.
- GuarantorA guarantor promises to repay a business loan if the borrower can't. Who usually signs, what they're liable for, and the protections worth asking about.
I 7
- Indicative offerAn indicative offer is a lender's early, non-binding outline of a business loan. What it covers, why the figures shift, and what to ask before you rely on one.
- InsolvencyInsolvency means you can't pay debts when they fall due. See ASIC's warning signs, the formal options for companies and sole traders, and where finance fits.
- InstalmentWhat an instalment means on an Australian business loan: what's inside each payment, why fintechs collect daily or weekly, and how the ATO uses the same word.
- InterestInterest explained for business borrowers: how it accrues, why most of it lands in the first year of a loan, and when paying early actually saves money.
- Interest-onlyInterest-only explained for Australian business borrowers: why repayments are lower, where it's common, and the maths of what happens when the period ends.
- Invoice discountingInvoice discounting in plain English: borrow against unpaid invoices while you keep chasing customers yourself, and why eligible debtors cap what you draw.
- Invoice financeInvoice finance defined: turning unpaid B2B invoices into cash within days, the three main types, the dollar cost and a customer check worth doing first.
L 20
- Landlord waiverWhat a landlord waiver is, why financiers want one before funding a fit-out or machinery in leased premises, and how to stop it delaying your settlement.
- LeaseA lease explained for Australian businesses: equipment vs premises leases, finance vs operating leases, GST timing, and what lenders read in your lease.
- LenderWhat a lender is in Australian business finance, the six main kinds from banks to private funders, and a quick check on who you're really dealing with.
- LesseeWhat being a lessee means for an Australian business, what you're committed to under an equipment or premises lease, and how lenders count lease payments.
- LessorA lessor is the owner who leases an asset to your business. See who acts as lessors in Australia, why they register on the PPSR, and what they check first.
- Letter of creditLetters of credit for Australian importers and exporters: who the parties are, how documents trigger payment, and why one small discrepancy can stall it.
- Letter of offerA letter of offer is a lender's formal loan offer. See what's inside, how it differs from conditional approval, and which clauses to check before signing.
- LeverageLeverage means using borrowed money to fund a business. See how Australian lenders measure it, why it magnifies gains and losses, and how much is too much.
- Line feeA line fee applies to the full limit of an overdraft or credit line, used or not. How it's worked out, a dollar example, and how to stop paying for idle limits.
- Line of creditA business line of credit lets you draw, repay and redraw up to a set limit. Learn how bank and online versions differ and the habit that gets limits cut.
- LiquidationLiquidation explained for Australian owners: the three types, who gets paid first, why a director guarantee survives, and what lenders think afterwards.
- LiquidityWhat liquidity means for an Australian business, how the current and quick ratios measure it, and why a profitable firm with stock tied up can still look risky.
- Loan agreementWhat a business loan agreement contains, how it differs from a letter of offer, the small business protections that apply and clauses to read twice.
- Loan applicationWhat a business loan application is, how it differs from an enquiry, the documents lenders want and why the order you apply in matters for your credit file.
- Loan covenantLoan covenants by facility type: what banks, equipment funders, invoice financiers and private lenders test, and how to fix an LVR breach after a revaluation.
- Loan servicingLoan servicing explained: who collects your repayments, issues payout figures and handles arrears, and why 'can you service it' means something else entirely.
- Loan termWhat a loan term is, typical terms for each kind of business finance in Australia, and a worked example showing how a longer term can double the total cost.
- Loan to cost ratioLoan to cost ratio compares a development loan with total project cost. What counts as cost, why lenders also test LVR, and a worked example with real figures.
- Loan-to-value ratioLoan-to-value ratio (LVR) explained for business borrowers: the formula, why the lender's valuation matters more than yours, and how combined LVR caps a loan.
- Low docLow doc means a lender takes BAS, bank statements or an accountant's letter in place of tax returns. What gets swapped, what is still needed, and the trade-off.
M 8
- MarginMargin means two things in business lending: the lender's add-on over its base rate, and your own profit margin. Here's how each one shapes what you can borrow.
- Merchant cash advanceA merchant cash advance is repaid from a slice of your card takings. How the split and factor work, what a slow month does, and what the surcharge ban changes.
- Mezzanine debtMezzanine debt is a loan ranked behind the senior lender but ahead of the owners. See who gets paid first when a project sells well, and when it falls short.
- Minimum turnoverMinimum turnover is the lowest sales figure a lender will consider. How it's measured, why timing your application can matter, and options if you're just under.
- MortgageA mortgage is security over land recorded on the title, not the loan itself. How business mortgages work in Australia, how priority is set, and why it matters.
- Mortgage brokerA mortgage broker arranges home-secured loans from a panel of lenders. How they're paid, where their help stops for business owners, and what to ask first.
- MortgageeA mortgagee is the lender holding a mortgage over your property. What it can and can't do, how a mortgagee sale works, and who is paid from the proceeds.
- MortgagorMortgagor explained: the property owner who grants a mortgage, why it isn't always the borrower in business lending, and what signing as one commits you to.
N 4
- Net profitNet profit explained for Australian owners: how it differs from gross profit, why low taxable profit can shrink borrowing, and what lenders add back.
- Net worthNet worth in business lending: assets minus liabilities, the statement of position directors sign, and why a high figure doesn't always mean approval.
- No docNo doc lending explained: what 'no documents' really skips, what you still provide, why property carries the deal, and how it differs from low doc.
- Non-bank lenderWhat a non-bank lender is in Australia, where its money comes from, how it's regulated, and when it suits a business a bank won't fund quickly enough.
O 3
- Operating expensesOperating expenses are the everyday costs of running a business. See what's included, how the ATO treats them and the opex figure lenders look at first.
- Operating leaseOperating lease explained: rent equipment for part of its life, hand it back, often with servicing included. How it differs from a finance lease.
- OverdraftAn overdraft lets your business account dip below zero up to an agreed limit. How the limit, line fee and review work, plus a worked cost example in dollars.
P 14
- PartnershipA partnership is two or more people running a business together. Why every partner signs, which tax papers lenders want, and what happens when one leaves.
- Payment holidayA payment holiday pauses business loan repayments for a set time, but interest usually keeps running. How it works in Australia and what a pause really costs.
- Payment planA payment plan lets you clear a debt, usually to the ATO, in instalments. What it costs, why the interest stopped being deductible, and how lenders view one.
- Personal guaranteeA personal guarantee puts you on the hook if a business can't repay its loan. Who signs one, how limits and security work, and the protections banks must give.
- Personal propertyIn Australian lending, personal property means almost everything except land, from trucks to invoices. Why the legal meaning matters when you borrow.
- PPSRThe PPSR is where lenders record security over vehicles, equipment, stock and invoices. How searches work and why old registrations can stall your next loan.
- Prepaid interestPrepaid interest is taken from your loan at settlement, so less cash lands in your account. How it works on caveat and bridging loans, with a dollar example.
- PrincipalPrincipal explained for Australian business loans: why it can be bigger than the cash you receive, how fees creep in, and why repaying it isn't deductible.
- Principal and interestPrincipal and interest repayments explained: the two ways Australian lenders structure them, why early payments are mostly interest, and how Div 7A uses P&I.
- Private lenderWhat a private lender is, where its money comes from, how it decides differently from a bank, and the questions to ask before you sign a private business loan.
- Profit and loss statementWhat a profit and loss statement is, the lines Australian lenders check first, why it won't match your bank deposits, and a worked P&L with add-backs.
- ProfitabilityProfitability is how well a business turns sales into profit. See the key margins, how ATO benchmarks help, and why profitable firms still run short of cash.
- Progress drawProgress draws explained: how construction lenders release money stage by stage, what the inspection checks, the cost-to-complete test and a staged example.
- Property valuationA property valuation is a valuer's market value estimate for a lender. Why it often lands below an agent's appraisal, and how it caps what you can borrow.
R 10
- ReceivablesReceivables explained: money customers owe your business, why lenders don't count every dollar of it, and a worked example of what a ledger can really fund.
- ReceiverWhat a receiver is in Australian business lending, who appoints one, whose interests they serve, and the 10-business-day job directors face on day one.
- RefinanceRefinance explained simply: paying out one business loan with a new one, the exit costs owners forget, and a worked example of when switching really pays.
- Registered mortgageWhat a registered mortgage is on an Australian land title, why registration order decides who is paid first, and how lenders use one for business loans.
- RepaymentRepayment explained for Australian business borrowers: what each payment covers, why weekly debits change the maths, and how to read the true dollar cost.
- Repayment scheduleA repayment schedule lists every payment on a business loan, when it falls due and how it splits into interest and principal. Learn to read one properly.
- Residual valueResidual value is the final payment on a finance lease or hire purchase. See the ATO minimum percentages for cars, a ute example, and your options at lease end.
- Retention of titleRetention of title lets a supplier keep ownership of goods until they're paid for. Learn the PPSR timing rules, why lenders care, and a stock supplier example.
- Revolving creditRevolving credit lets a business draw, repay and redraw up to a set limit. How overdrafts and lines of credit work, what they cost, and a month-by-month case.
- Risk gradeWhat a risk grade is, how Australian banks and non-banks score a business borrower, what moves the grade, and why it decides price, security and approval.
S 19
- Sale and leasebackSale and leaseback: sell equipment or premises you own to a financier, then lease it straight back. How it works, the GST catch and a worked example.
- Second mortgageWhat a second mortgage is, how it ranks behind your first lender on the title, whether the first lender must agree, and how owners use one to fund a business.
- Secured creditorA secured creditor holds security over assets it can call on if a debt isn't paid. Where it ranks, why late PPSR registration can wipe that out, and an example.
- Secured loanA secured loan is backed by an asset the lender can sell if you default. See what Australian lenders accept as security and why it changes the dollars.
- SecurityIn lending, security is the asset a lender can sell if a loan isn't repaid. Learn the types Australian lenders accept and why each is valued differently.
- Security interestA security interest is a lender's legal claim over an asset securing a debt. How the PPSA and PPSR work, why registration timing matters, and what to search.
- Senior debtSenior debt is the loan that gets repaid first if a business fails. See how it ranks against mezzanine debt and equity, and why the order changes what you pay.
- ServiceabilityServiceability is a lender's test of whether your income can cover a new loan. See how banks and non-banks measure it, with a worked dollar example.
- SettlementSettlement is the moment loan funds move and property changes hands. How it works in Australia, what delays it and why lenders book it like a flight.
- Settlement agentA settlement agent runs the paperwork and funds for a property or business sale. Why the title is mostly used in WA, its licence types, and where lenders fit.
- Settlement statementA settlement statement shows where every dollar goes on settlement day. Learn to read one for a business loan or property purchase, and which lines to query.
- Small business restructuringSmall business restructuring lets a company owing up to $1m keep trading while creditors vote on a plan. Who qualifies, the timeline and the loan impact.
- Sole traderA sole trader is one person trading under their own ABN. What that means for tax, personal liability and getting a business loan, plus the papers lenders want.
- SolvencySolvency means being able to pay your debts when they fall due. See the cash flow test, the yearly solvency resolution and why lenders ask you to confirm it.
- Statutory demandA statutory demand gives a company 21 days to pay a debt of $4,000 or more or face a winding up application. What it is, what it isn't, and your first moves.
- Stock financeStock finance lets a business buy inventory now and repay as it sells. How it works in Australia, what lenders check, and why the PPSR timing matters.
- SubordinationSubordination puts one debt behind another in the queue for repayment. Why lenders ask directors to subordinate loans, and how priority deeds work in Australia.
- Sundry debtorsSundry debtors are amounts owed to your business outside normal sales. What sits in the account, and why a lender may strip it out of your working capital.
- Supplier creditSupplier credit is the time your suppliers give you to pay. How credit accounts work, what you sign to open one, and what to do when a supplier cuts your terms.
T 12
- Tax invoiceA tax invoice lets a buyer claim GST credits. What it must show, the $1,000 rule, and how a wrong name can stall equipment finance.
- Tax returnA tax return reports a year's income and deductions to the ATO. Why most lenders ask for two years of them, and what to do if yours are late or show low income.
- Term deposit securityTerm deposit security explained: how a lender holds your cash deposit against a loan, facility or bank guarantee, and why money you own can still be locked up.
- Term loanWhat a term loan is: one lump sum, a fixed end date and scheduled repayments. How business term loans differ from a line of credit, plus a dollar-cost example.
- Term sheetA term sheet sets out the key terms a lender proposes before the full loan contract. What's usually binding, which fees start on signing, and a worked example.
- Title searchA title search shows who owns a property and what's registered against it. See what lenders look for, what it won't reveal, and why they search twice.
- Torrens titleTorrens title is the government-run land register behind almost every Australian property. Learn how it works and why it makes property-secured lending fast.
- Trade creditTrade credit lets a business take goods now and pay the supplier later, often in 30 days. What it costs, the guarantee clause to read, and how lenders view it.
- Trading historyTrading history is how long your business has been operating. See how lenders measure it, the usual minimums, and why a change of structure can reset the clock.
- Trust deedA trust deed is the rulebook for a trust. Which clauses lenders check before funding a trust business, and the paperwork gaps that most often delay settlement.
- TrusteeA trustee is the person or company that legally holds and runs a trust's assets. Why the trustee is the real borrower, and what that means for liability.
- TurnoverTurnover is the total income a business brings in from sales before costs. How it differs from profit, the ATO thresholds tied to it, and how lenders use it.
U 3
- UnencumberedUnencumbered means an asset has no mortgage, caveat or security interest over it. How to prove it, why lenders value it, and the paid-off loans that linger.
- Unsecured creditorAn unsecured creditor is owed money but holds no security over your assets. Who counts, where they rank, why the ATO is one, and how cents-in-the-dollar works.
- Unsecured loanAn unsecured loan isn't backed by a specific asset. What that means in Australian business lending, why a guarantee is still usual, and how limits are set.
V 5
- ValuationA valuation is an independent opinion of what an asset is worth. The types lenders order, why their figure often trails yours, and how it sets your loan size.
- Valuation feeA valuation fee pays the valuer a lender sends to price your security. Who picks them, why you often pay even if the loan falls over, and how to plan for it.
- Variable rateWhat a variable rate means on an Australian business loan, why it moves, how an RBA change flows into your repayments in dollars, and when variable beats fixed.
- Vendor financeVendor finance explained: how a seller lends part of the price when you buy an Australian business, how it works with a bank loan, and the security involved.
- Voluntary administrationVoluntary administration in plain English: who appoints the administrator, the five-week timeline, the freeze on creditors, and the three ways it can end.
W 4
- Working capitalWorking capital is current assets minus current liabilities. See how to calculate it, why GST you've collected can flatter the figure, and how lenders read it.
- Working capital cycleThe working capital cycle counts the days from paying for stock to being paid by customers. The formula, an Australian example, and what shortening it frees up.
- Working capital loanA working capital loan funds day-to-day running costs, not assets. The forms it takes in Australia, matching the term to your cash cycle, and a sizing example.
- Write-offWhat a write-off means for an Australian business: writing off a bad debt, the instant asset write-off, and why a lender writing off your loan doesn't erase it.
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