Credit & loans

1%/10 Net 30 is a common credit term that offers a 1% discount on invoice payments if paid within 10 days, otherwise the full amount is due within 30 days.

Annual Percentage Rate (APR) is the annual rate charged for borrowing or earned through an investment, adjusted for the frequency of compounding.

The yearly cost of a loan including interest and fees, expressed as a percentage.

Bankruptcy is a legal process through which individuals or businesses unable to meet their financial obligations can seek relief from some or all of their debts.

Collateral refers to assets that a borrower offers to a lender to secure a loan, which the lender can seize if the borrower fails to repay the loan.

A three-digit number that represents your creditworthiness based on your credit history.

Debt ratio is a financial metric that measures the proportion of a company's total liabilities to its total assets, indicating the extent of leverage and financial risk.

A guarantor is an individual or entity that agrees to be responsible for another's debt or performance under a contract, if the original party fails to meet their obligations.

Joint and several liability is a legal doctrine where each party in a group is individually responsible for the entire debt or obligation, as well as collectively with others.

A line of credit (LOC) is a flexible loan from a bank or financial institution that allows a borrower to draw funds up to a predetermined limit as needed, with interest paid only on the amount used.

A NINJA loan is a type of high-risk loan that is extended to a borrower without verifying their income, job, or assets.

A promissory note is a financial document in which one party promises in writing to pay a determinate sum of money to the other, either at a fixed or determinable future time or on demand of the payee, under specific terms.