Finance terms starting with R

21 terms starting with R

R&D tax incentive

The R&D tax incentive is a tax offset program, administered by AusIndustry and the ATO, that reduces the net cost of eligible experimental research and development for companies.

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Rate

A rate is a ratio or charge expressed against a unit, commonly per year, that measures cost, return or proportion; in finance it usually means an interest rate.

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Ratio analysis

Ratio analysis is the technique of turning balance sheet, profit and loss and cash flow figures into simple ratios that show a business's liquidity, profitability, efficiency and solvency.

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RBA

The RBA (Reserve Bank of Australia) is Australia's central bank: it sets the cash rate that flows through to loan and savings rates, and operates key payment settlement systems.

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Receivables

Receivables are amounts owed to your business, mainly by customers for goods or services supplied on credit, recorded as assets on the balance sheet until they are collected.

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Recourse

Recourse is a lender's or financier's right to pursue the borrower or its guarantors for what is still owed after the security or the underlying receivable falls short.

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Reducing balance depreciation

Reducing balance depreciation is a depreciation method that charges a fixed percentage of an asset's written-down value each year, so the deduction starts high and falls over time.

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Refinancing

Refinancing is replacing an existing loan with a new one, from the same or a different lender, to change the interest rate, term or features, or to release equity.

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Relationship lending

Relationship lending is credit that a lender underwrites and manages using information built up over repeated dealings with the borrower, blending hard data with soft insights from relationship managers.

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Renewal option

A renewal option is a clause in a commercial lease that gives the tenant the right to extend the lease for a further term on pre-agreed or determined terms.

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Rentals

Rentals are arrangements to pay for the use of an asset without owning it, and in a lease contract the periodic payments themselves.

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Repossession

Repossession is the enforced recovery of goods that secure a loan, such as a car, ute or machinery, after the borrower has defaulted on the contract.

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Residual risk

Residual risk is the exposure that remains after controls have been applied to an inherent risk: the risk an organisation must still accept, transfer or treat further.

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Residual value

Residual value is the amount a leased car or asset is expected to be worth when the lease ends, set at the start and used to calculate the rentals.

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Residual value guarantee (RVG)

A residual value guarantee (RVG) is a lessee's or third party's promise to pay the lessor any shortfall if a leased asset sells for less than its agreed residual.

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Residual value insurance

Residual value insurance (RVI) is a policy that pays an owner, lessor or financier the shortfall when an asset sells below its agreed residual value at lease end.

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Responsible lending obligations

Responsible lending obligations are duties under the NCCP Act that require lenders and brokers to inquire into and verify a consumer's finances and not provide or suggest unsuitable credit.

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Reverse mortgage

A reverse mortgage is a secured loan that lets an older homeowner borrow against the equity in their home, with no regular repayments while they live there.

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Revolving credit

Revolving credit is a form of credit that lets you draw, repay and redraw funds up to a pre-set limit, with minimum monthly repayments.

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Risk weighting

Risk weighting is the method banks use to scale each asset by how risky it is, so riskier lending requires more capital behind it.

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Roll-over

A roll-over is an automatic renewal clause that extends a fixed-term agreement for a new term unless one party gives notice to end it within the required window.

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