Automated Clearing House (ACH): An electronic method of receiving or sending payments. Customers can use this as a repayment method for their loans and can be a funding requirement. Vendor payments for loan funding can be paid by ACH.
B
Balloon Payment: A large, lump-sum payment scheduled at the end of a series of smaller periodic payments with respect to applicable loan and financing lease transactions.
Basis Point: A unit of measurement equal to 1/100th of a percent. For example, 125 basis points = 1.25%
Broker: A company or person who arranges, for a fee, transactions between borrowers and lenders.
Captive Financing: Occurs when a company provides financing to customers who are purchasing equipment sold by the company.
Cash Flow: Measure of a business' ability to meet its financial obligations. Cash flow is calculated by adding the business net income before interest, taxes, depreciation, and amortization. Net Cash Flow is equal to Cash Flow minus debt service and other non-cancelable financial obligations.
Collateral: Assets pledged by a borrower to secure a loan.
Commitment Letter: Letter prepared by the equipment lender outlining terms and conditions between the borrower and lender for purchases.
Documentation Fee: A fee charged for preparing, distributing, and storing transaction documents.
Down Payments: An initial payment made when financing a purchase.
Fair Credit Reporting Act (FCRA): A law that protects how credit reports are used and provides guidelines on the accuracy of reporting and the confidentiality of information.
Family Entertainment Center (FEC): A small amusement park marketed toward families with small children to teenagers, and often entirely indoors or associated with a larger operation, such as a theme park.
Federal Deposit Insurance Corporation (FDIC): A United States government corporation providing deposit insurance to depositors in U.S. commercial banks and savings institutions.
Guaranty: An agreement by one party to accept responsibility for a financial obligation of another person. The guarantor's obligation is generally triggered when the primary person or entity does not satisfy the guaranteed obligation.
Guarantor: One who guarantees a debt or obligation of another person or entity.
Location Based Entertainment (LBE): Sector of the amusement industry that encompasses family entertainment centers, movie theaters, and bowling alleys among others.
Net Income: Gross sales (revenue) minus cost of goods sold, SG&A, taxes, interest, depreciation, and other expenses.
Net Present Value/Present Value: The discounted value of a payment or stream of payments to be received in the future, taking into consideration a specific interest or discount rate. Present Value represents a series of future cash flows expressed in today’s dollars.
Net Worth: Total assets minus total liabilities of an individual or company. For a company, also called owner’s equity or shareholders’ equity or net assets.
Small Business Administration 7(a) Loan Program: The SBA 7(a) loan program is the Small Business Administration's primary program for providing financial assistance to small businesses. The terms and conditions, like the guaranty percentage and loan amount, may vary by the type of loan.
Unsecured Loan: A loan that is not secured by assets, but is based solely on the creditworthiness of the customer.
Video Lottery Terminal (VLT): A gaming machine that allows gamblers to bet on the outcome of a video game.