25 terms starting with P
Pari passu is a Latin term meaning on equal footing: two or more lenders rank equally, so they share any recovery in proportion if the borrower defaults.
Read definitionA partner visa home loan is a residential mortgage where at least one borrower holds a partner or spouse visa, assessed on that borrower's immigration status.
Read definitionA partnership is a business structure in which two or more people or entities carry on a business together with a view to profit, sharing profits, losses and liabilities.
Read definitionA payday loan is a small, unsecured loan meant to cover an immediate shortfall, usually repaid over a short term timed around your pay cycle.
Read definitionPayment frequency is how often scheduled repayments fall due on a loan, typically weekly, fortnightly or monthly, which affects total interest, loan term and how repayments fit your cashflow.
Read definitionA payout is the total amount needed to close a loan or lease on a given date: the balance owing, accrued interest and any break costs or fees.
Read definitionPenalty interest is interest charged on an overdue amount by a revenue office, court or creditor to compensate for late payment and deter delay.
Read definitionPerfection (of a security interest) is the step that makes a lender's security effective against other creditors, usually by registering it on the PPSR.
Read definitionA personal guarantee is a legally binding promise by an individual, usually a director or business owner, to pay a creditor if the borrowing business or person defaults.
Read definitionA personal loan is a fixed term loan for personal expenses, repaid in regular instalments over an agreed period, usually principal and interest.
Read definitionThe Personal Property Securities Register (PPSR) is the national online register where lenders and suppliers record security interests over personal property such as vehicles and plant.
Read definitionPlant and machinery means the tangible assets a business uses to make, move, process or service things, such as excavators, forklifts and CNC machines.
Read definitionPolitically exposed person (PEP) checks are screening steps that flag customers who hold prominent public positions, so a lender can apply extra due diligence under anti-money laundering laws.
Read definitionA portfolio is a grouped set of loans, leases and the assets behind them, held by one lender or lessor and managed together for reporting, risk and performance.
Read definitionPrime is the lowest-risk credit tier: borrowers with a clean repayment history, stable income and low debt who receive a lender's best pricing and simplest terms.
Read definitionPrime lenders are lenders whose credit appetite is built around lower-risk borrowers: they apply conservative underwriting and stricter documentation, and offer standardised contracts and generally more favourable pricing.
Read definitionPrincipal is the amount of money you originally borrowed or, on a running loan, the part of that sum you still owe, excluding interest, fees and charges.
Read definitionThe Privacy Act 1988 is the Australian law that sets out how government agencies and many organisations must collect, use, disclose and correct personal information, including credit reporting data.
Read definitionProbability of default (PD) is an estimate of the chance that a borrower will fail to meet their contractual repayments within a set period, usually one year.
Read definitionA product disclosure statement (PDS) is the document a product issuer must give a retail customer before they buy a financial product, setting out its features, risks, fees and costs.
Read definitionProfessional indemnity insurance is business cover that pays claims arising from professional advice or services that cause a customer financial loss.
Read definitionPrudential regulation is APRA's framework of capital and risk rules designed to keep banks, insurers and superannuation funds financially sound, and it shapes how much they lend.
Read definitionA Pty Ltd company is a private company with its own legal identity that cannot offer shares to the public and limits shareholders' liability to their share capital.
Read definitionPublic liability insurance is business cover that pays compensation and legal costs when your work injures a third party or damages their property.
Read definitionA purchase price is the agreed consideration a buyer pays a seller for an asset, and it forms the base figure for finance, depreciation and tax.
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