Finance terms starting with B

23 terms starting with B

Bad credit finance

Bad credit finance is a broad category of lending products designed for borrowers whose credit history shows defaults, court judgments or bankruptcy, problems that make mainstream lenders hesitant.

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Bad debt

A bad debt is an amount owed to your business, usually an unpaid invoice already counted as income, that you cannot recover despite reasonable efforts and so write off.

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Balance sheet

A balance sheet is a financial statement that shows a business's financial position at a specific date: what it owns (assets), what it owes (liabilities) and the owners' equity.

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Balloon payment

A balloon payment is a lump sum, agreed upfront, that is paid at the end of a loan term and lowers the regular repayments by deferring part of the principal.

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Balloon refinance

A balloon refinance is a new loan taken out to pay the balloon payment owed at the end of a car or equipment finance term.

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Bank guarantee

A bank guarantee is a written promise from a bank to pay a set amount to a third party if its customer does not meet an obligation.

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Bank statement

A bank statement is a record from your bank listing every deposit, withdrawal and fee on an account, with the running balance for the period.

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Bankruptcy

Bankruptcy is a legal status for an individual who cannot pay their debts, under which a trustee takes control of their affairs and deals with creditors on their behalf.

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Base rate

A base rate is the reference interest rate a lender starts from, before it adds the margin, or spread, that reflects the borrower and the term.

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Basis point

A basis point (bps) is a unit equal to one hundredth of a percentage point, used to express small changes in interest rates, yields, fees and spreads.

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Beneficial owner

A beneficial owner is the natural person who ultimately owns or controls a company, trust or other entity, even when legal title sits in another name.

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Beneficial ownership

Beneficial ownership is the right to enjoy the benefits of an asset or company, such as income or sale proceeds, even when someone else is the legal owner.

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Best interests duty

The best interests duty is a statutory obligation requiring financial advisers giving personal advice and mortgage brokers arranging credit to put the customer's interests first.

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Bill of sale

A bill of sale is a written record that documents the transfer of ownership of personal property, such as a vehicle, boat or equipment, from a seller to a buyer.

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Block discounting

Block discounting is receivables finance where a lender finances a whole portfolio, or block, of hire-purchase or instalment contracts in one facility rather than individual invoices.

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Break costs

Break costs are the charges a lender passes on when a fixed rate loan is repaid or changed before the fixed term ends.

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Break option

A break option is a lease clause that lets the lessee, the lessor or both end a lease early, provided they give the required notice and meet its conditions.

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Bridging loan

A bridging loan is short-term finance secured by a mortgage over property, covering the gap when you buy a new property before the sale of your existing one settles.

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Broker

A broker is a licensed intermediary who connects borrowers with lenders, comparing finance options across a panel of lenders and submitting applications on the borrower's behalf.

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Business loan

A business loan is finance for business operations, capital expenditure or growth, repaid with interest, either over an agreed term or as a revolving limit you draw and repay.

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Business risk

Business risk is the chance that an event or condition stops a business meeting its objectives, from profitability and growth to regulatory compliance and continuity.

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Buy now, pay later (BNPL)

Buy now, pay later (BNPL) is regulated consumer credit where a provider pays the merchant up front and you repay in set instalments, usually interest-free if paid on time.

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Buy-back

A buy-back is a contractual arrangement in asset finance where the seller, or another party, agrees to repurchase an asset at a future date or under agreed conditions.

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