41 terms starting with C
A cap rate is either a ceiling written into a variable interest rate, or, in property, short for capitalisation rate: net operating income divided by value.
Read definitionCapital allowances are the tax deductions you can claim for the decline in value of depreciating assets, such as plant and equipment, that you hold to produce assessable income.
Read definitionCapital expenditure (CapEx) is money a business spends to buy or improve fixed assets such as buildings, plant and vehicles, rather than on day-to-day running costs.
Read definitionCapital gains tax (CGT) is the income tax you pay on the net profit from selling or disposing of an asset, added to your income rather than charged separately.
Read definitionA captive lessor is a finance company owned or sponsored by a manufacturer, distributor or dealer network that exists mainly to provide leasing and finance supporting the vendor's sales.
Read definitionA car loan is a credit contract used to buy a vehicle: the lender provides the funds and you repay them over time with interest.
Read definitionCash flow is the movement of money into and out of a business over a period; unlike profit, it tracks actual receipts and payments, so it measures liquidity.
Read definitionThe cash rate is the interest rate the RBA targets for overnight loans between banks, the benchmark that anchors short-term funding costs and influences most Australian lending rates.
Read definitionA cashflow loan is short-term business finance assessed on your recent trading cashflow and receivables rather than pledged assets, covering payroll, supplier bills or stock before customer payments arrive.
Read definitionA caveat is a notice lodged on a property title that warns others of a claimed interest and blocks most dealings until it is resolved.
Read definitionA chattel mortgage is a business loan for a vehicle or equipment: you own the asset from settlement and the lender holds a security interest until it is repaid.
Read definitionClawbacks are contract clauses that let a lender or aggregator recover commission already paid to a broker when a loan is repaid, refinanced or discharged within a set period.
Read definitionCollateral is the property a borrower pledges to a lender as security for a loan, which the lender can sell if the borrower defaults.
Read definitionCollateral risk is the chance that an asset pledged as security fails to cover the exposure because it falls in value, cannot be sold quickly or cannot be enforced.
Read definitionCollections is the recovery process a lender, creditor or business runs when payments fall overdue: reminders, calls, payment plans and hardship offers, then referral to agencies or legal action.
Read definitionA commercial loan is credit provided to a company, trust or other business structure to fund business activities such as property, equipment or working capital, not personal spending.
Read definitionCommissions are payments a lender or product issuer makes to a broker, adviser or referrer for arranging or servicing a financial product, paid upfront, as ongoing trail or both.
Read definitionA commitment letter is a document from a lender confirming it will provide a specified amount of finance on stated terms, subject to listed conditions being met before drawdown.
Read definitionA company is a separate legal entity, formed under the Corporations Act 2001, that can own property, borrow and be sued in its own name, independently of its shareholders.
Read definitionA comparison rate is a single annual percentage that combines a loan's interest rate with most upfront and ongoing fees to show its ongoing cost more clearly.
Read definitionCompliance is the work a business does to meet the laws, licence conditions and industry rules that apply to it, and to prove it has.
Read definitionCompound interest is interest calculated on both the original principal and the interest already added in earlier periods, so balances and debts grow faster than with simple interest.
Read definitionComprehensive car insurance is the broadest level of motor cover, paying for damage to your own car as well as damage you cause to other people's property.
Read definitionComprehensive credit reporting (CCR) is the system under which lenders share positive credit information, such as repayment history and credit limits, as well as defaults, on your credit file.
Read definitionA conditional sale is a contract where the buyer takes possession of goods but the seller keeps legal title until a stated condition, usually full payment, is met.
Read definitionA construction loan is a loan that pays for building work in stages, releasing funds as a new home, rebuild, extension or commercial development reaches each milestone.
Read definitionConsumer credit is a loan, credit card, consumer lease or other credit provided mainly for personal, household or domestic purposes and regulated by the National Credit Code.
Read definitionContents insurance is cover for the belongings inside your home, paying to repair or replace items damaged or stolen in an insured event.
Read definitionContract hire is a fixed-term vehicle or equipment lease where a business pays fixed rentals for exclusive use of the asset while the lessor keeps ownership and resale risk.
Read definitionCounter-terrorism finance (CTF) is the set of controls that prevent, detect and cut off funds flowing to terrorists, which Australian reporting entities must apply under the AML/CTF Act.
Read definitionCovenants are promises, obligations or restrictions written into a contract or recorded on land title that bind the parties, such as a borrower's promise to maintain minimum interest cover.
Read definitionCredit is the ability to borrow money or receive goods and services now in return for a promise to repay later, usually with interest and fees on agreed terms.
Read definitionA credit card is a form of revolving credit that lets you borrow up to a pre-approved limit for purchases, cash advances or short-term finance.
Read definitionA credit guide is a prescribed disclosure document that a broker or credit licensee must give a consumer before providing credit assistance, covering licence details, remuneration and complaints handling.
Read definitionCredit loss is the amount a lender or creditor expects not to recover from a loan, trade receivable or lease because the borrower fails to pay.
Read definitionA credit rating is an independent assessment of how likely a government, company or debt issue is to meet its obligations on time, graded from AAA down to D.
Read definitionCredit risk is the possibility that a borrower or counterparty will default on their contractual repayments, leaving the lender or investor with a loss.
Read definitionA credit score is a number calculated from your credit report that tells lenders how likely you are to repay, based on your borrowing history.
Read definitionA creditor is a person, business or lender that is owed money by someone else, usually under a loan, an invoice or a supply agreement.
Read definitionCross-collateralisation is a lending arrangement where one lender holds more than one of your assets as security, or one asset for more than one loan, tying them together.
Read definitionCross-default is a loan clause that puts you in default on one facility as soon as you default on another finance agreement.
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