Finance terms starting with D

22 terms starting with D

Data protection

Data protection is the legal duty of brokers and lenders to handle customers' personal information under the Privacy Act and the Australian Privacy Principles, from collection to secure destruction.

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Dealers

Dealers are businesses that buy and resell goods such as vehicles, equipment or machinery, and often arrange or introduce finance for the buyer at the point of sale.

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Debt adjusting

Debt adjusting is any arrangement that changes what a debtor owes or when they pay it, from an informal hardship variation through to a debt agreement or bankruptcy.

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Debt collection regulations

Debt collection regulations are the laws, guidance and licensing rules that govern how creditors and collectors may behave when recovering money owed, including bans on harassment and misleading conduct.

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Debt consolidation loan

A debt consolidation loan is a personal loan used to pay out several existing debts, such as credit cards and payday loans, leaving one repayment.

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Debt counselling

Debt counselling is a free, confidential service, known in Australia as financial counselling, that helps people in financial difficulty build a realistic budget and negotiate hardship arrangements with creditors.

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Debt service coverage ratio (DSCR)

The debt service coverage ratio (DSCR) is a lending measure that divides the cash flow available for repayments by the debt repayments due over the same period.

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Debtor

A debtor is a person or business that owes money to someone else, whether under a loan, a credit account or an unpaid invoice.

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Deed of release

A deed of release is a signed legal document in which one party gives up a claim or a security interest against another, ending that obligation.

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Default

A default is a borrower's failure to meet the terms of a credit contract, usually by missing repayments, which lets the lender demand the balance and enforce its security.

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Default interest

Default interest is an agreed or statutory rate of interest charged on a loan, invoice or judgment when a payment falls into arrears or a contract term is breached.

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Deposit

A deposit is the upfront amount a buyer or borrower pays towards a purchase, either as part-payment on a sale contract or as cash contributed to asset finance.

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Depreciation

Depreciation is the fall in an asset's value over time, spread across the years the asset is used so the cost can be claimed as a tax deduction.

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Depreciation schedule

A depreciation schedule is a report that lists an asset's cost, its effective life and the depreciation you can claim against income each year.

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Design and distribution obligations (DDO)

Design and distribution obligations (DDO) are rules requiring the issuer of a retail financial product to define its target market and distributors to take reasonable steps to sell within it.

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Direct debit

A direct debit is an authority, given through a Direct Debit Request (DDR), that lets a biller withdraw agreed payments from your nominated bank account, usually for recurring bills.

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Disbursement

A disbursement is money paid out to a third party or on your behalf, such as loan funds released at settlement or costs a solicitor pays for you.

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Distributors

Distributors are businesses that buy goods from a manufacturer and resell them to dealers, retailers or end customers, often supporting the sale with pre-arranged finance programs and stocking finance.

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Dividend

A dividend is a payment a company makes to its shareholders, usually out of profits, paid as cash or as extra shares.

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Dividend yield

A dividend yield is the annual dividend per share divided by the current share price, shown as a percentage so income can be compared across shares.

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Drawdown

A drawdown is a borrower taking funds under an approved loan facility, in one payment or in stages, once the lender's conditions have been met.

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Dual financing

Dual financing is a lending structure where two separate lenders finance the same borrower or project, typically a senior first-ranking facility alongside a subordinated or mezzanine loan.

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