Finance terms starting with M

13 terms starting with M

Maintenance

Maintenance is the inspection, servicing and repair work that keeps an asset in safe working order, and in finance and hire agreements a contractual obligation with set tasks.

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Manufacturer buy-back

A manufacturer buy-back is a commitment by a manufacturer to repurchase a vehicle or equipment at a pre-agreed price, or on set conditions, usually when a lease ends.

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Margin

Margin is the share of each revenue dollar left after costs, what a lender adds to its base rate, or your own equity in a geared share portfolio.

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Margin call

A margin call is a demand from a lender for extra cash or security when the value of the assets backing a loan falls too far.

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Master lease

A master lease is an umbrella agreement: in property, a head lease taken to sublet; in equipment finance, one contract covering separate asset schedules.

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Material adverse change

A material adverse change is a significant deterioration in your financial position that, under a MAC clause, lets a lender decline to fund a facility or demand repayment.

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Medium amount credit contract (MACC)

A medium amount credit contract (MACC) is a non-bank consumer credit contract for more than $2,000 and up to $5,000, running from 16 days to two years.

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Mezzanine finance

Mezzanine finance is a hybrid layer of capital that sits between senior debt and equity, ranking behind the senior lender and often carrying equity-style upside for the financier.

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Middle-ticket lease

A middle-ticket lease is equipment finance for medium-value assets like trucks or medical machines, manually underwritten rather than automated, with a negotiated term and residual.

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Money laundering

Money laundering is the process of disguising the origin, movement or ownership of money made from crime so that it appears legitimate and can be used openly.

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Moratorium

A moratorium is a temporary pause on repayments or on creditor enforcement, agreed with a lender or imposed by law, that gives a borrower or an insolvent company breathing space.

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Mortgage

A mortgage is the legal charge a lender registers over property to secure a loan, giving it the right to sell the property if you default.

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Multi-financing

Multi-financing is the use of two or more finance facilities or lenders to fund business assets, matching each part of a purchase to a suitable finance option.

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