Finance terms starting with O

9 terms starting with O

OAIC

The OAIC is the Office of the Australian Information Commissioner, Australia's independent privacy regulator, which enforces the Privacy Act, the Australian Privacy Principles and the Notifiable Data Breaches scheme.

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Off-balance-sheet (OBS)

Off-balance-sheet (OBS) describes assets, liabilities or obligations a business is exposed to but does not record on its balance sheet, such as guarantees and some leases.

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Off-lease equipment

Off-lease equipment is an asset, from laptops to utes and excavators, returned to the lessor at the end of its lease and resold on the secondary market, often refurbished.

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Open banking

Open banking is the regulated framework under Australia's Consumer Data Right (CDR) that lets you authorise accredited third parties to access specific financial data held by your bank.

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Open-ended lease

An open-ended lease is a lease where the lessee carries the residual value risk, paying any shortfall if the asset sells for less than its residual at the end.

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Operating lease

An operating lease is a lease where you pay to use an asset for a set term and hand it back, with the financier keeping ownership and the resale risk.

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Option to purchase

An option to purchase is a contractual right, not an obligation, to buy an asset such as land or a leased vehicle at an agreed price.

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Origination

Origination is the whole front end of a financed transaction, from finding and qualifying the borrower through application, underwriting and approval to documentation and settlement.

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Overdraft

An overdraft is a short-term credit facility attached to a transaction account that lets you spend past your available balance up to an agreed limit.

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