Banking Terms

Question 1

Amortize

Answer 1

Gradually write off the initial cost

Question 2

Pass through entity

Answer 2

Entity that does not cash flow - money passes through

Question 3

Repayment terms

Answer 3

Owe payments

Question 4

First Deed of Trust

Answer 4

We get property of default

Question 5

P Card

Answer 5

Card

Question 6

Carry Note

Answer 6

Carry back

Question 7

Mitigate

Answer 7

S

Question 8

Aggregate debt

Answer 8

S

Question 9

Aggregate Debt

Answer 9

Respect to an obligation, the sum of the following as of the date of determination 1) obligors attribute liens in respect of sake and lease back transaction entered into after the date of the initial issuance of the securities pursuant to section 3.07

Question 10

Internal Asset TeM

Answer 10

BBLC

Question 11

Trouble debt

Answer 11

Arrangements

Question 12

Forebearance

Answer 12

Agreement

Question 13

Talk more forcibly

Answer 13

Demand letters

Question 14

Loan Fees

Answer 14

Environmental evaluation $350
Evaluation/appraisal $700
Titles $2,000
Doc fee $150

Question 15

DSCR

Answer 15

Debt Service Coverage Ratio

Net operating income by the annual debt

Cash flow generated by the business will cover the new commercial loan payment by 1.25x

Question 16

Debt service

Answer 16

Debt service is the total of all principal and interest paid on debts over the course of a year.

Debt services are not reported on financial statements

They are reported on a Balance Sheet

Question 17

Cash flow

Answer 17

Current assets minus current liabilities

Question 18

Attrition

Answer 18

Loosing out the back end

Question 19

Curtailments

Answer 19

iDK

Question 20

Leverage

Answer 20

Borrow funds from a financial institution to buy more of an asset.

Question 21

Highly leveraged

Answer 21

A company has more debt than equity

Question 22

Balance sheet

Answer 22

A company’s financial position at a point in time.

Question 23

What are the components of a balance sheet

Answer 23

Assets
Liabilities
Owners (stockholders) equity

Question 24

Assets

Answer 24

Things a company owns:
Cash, petty cash, temporary investments, accounts receivable, inventory, supplies, prepaid insurance, land, land improvements, buildings, equipment, goodwill

Question 25

Contra assets

Answer 25

Asset accounts with balances: Allowance for doubtful accounts, accumulated depreciation- buildings, accumulated depreciation- equipment, accumulated depletion

Question 26

Classification of assets

Answer 26

Assets are presented in distinct groups, categories: | Current assets, investments, property, plant, and equipment, intangible

Question 27

S Corp

Answer 27

Pass through tax entities. No income is taxed at the corporate level. Instead the profit and loss passes through the business and reported to the owners personal tax return

Question 28

C Corp

Answer 28

Separately taxed entities. They pay taxes at the corporate level. Possible double taxation if corporate income is distributed to business owners as dividends, which are considered personal income

Question 29

Factoring

Answer 29

Slow receivables

Question 30

Articles of Organization

Answer 30

Outlines the initial statements required to form a limited liability company. Certificate of organization once approved, the orginazation is legally an LLC

Question 31

Operating agreement

Answer 31

Agreement between an LLC and financial managerial rights and duties

Question 32

What is the BBLCs expectation for leverage

Answer 32

3:1

Question 33

What factors are considered in decisioning

Answer 33

Aggregate Business credit score

Question 34

Cap ex

Answer 34

H

Question 35

Fixed assets

Answer 35

H

Question 36

Reliance Letter

Answer 36

A letter from one party to another party allowing them to Rey on the contents of a report

Question 37

Intended user

Answer 37

This is added to Evaluations for SBA to have access

Question 38

Mountain West Small Business committee of 5

Answer 38

They are the loan closers. Need three to sign off

Question 39

Collecting Tickler items after approval is often referred to as _____________ _________

Answer 39

Screen out

Question 40

LIBOR

Answer 40

London Interbank Offerred Ray: Interest rate that is calculated each day based in the rate that international banks lend money to each other in a short term basis

Question 41

SWAP

Answer 41

Financial derivatives that companies use to exchange interest rate payments with each other

Question 42

5-4-3-2-1 penalty

Answer 42

?

Question 43

What is Debenture

Answer 43

An unsecured loan certificate issued by a company, backed by general credit rather than by specified assets Defines the interest owed Statement that Acknowledges the debt