Finance terms starting with S

38 terms starting with S

Salary sacrifice

Salary sacrifice is an agreement with your employer to receive less salary in return for benefits paid from pre-tax pay, such as extra super or a novated lease.

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Sale and leaseback

A sale and leaseback is a finance transaction where a business sells an asset to a lessor and immediately leases it back, releasing cash without losing use of it.

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Sales aid finance

Sales aid finance is a vendor's point-of-sale finance program that lets customers pay for a purchase in regular repayments while the lender pays the vendor at settlement.

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Salvage value

Salvage value is the informal name for what AASB 116 calls an asset's residual value: what it will fetch at the end of its useful life.

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Sanctions checks

Sanctions checks are screening steps that test whether a person, company or transaction is subject to government sanctions, such as asset freezes, before a lender deals with them.

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Secured loan

A secured loan is a loan backed by an asset the lender can repossess and sell if the borrower defaults, which usually lowers the cost.

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Securitisation

Securitisation is the process of pooling loans, leases or receivables into a separate vehicle that issues securities to investors, so the originator raises funding and transfers risk.

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Security (collateral)

Security (collateral) is an asset or legal interest a borrower grants a lender, which the lender can take and sell to recover the debt if the borrower defaults.

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Security deposit

A security deposit is an upfront cash contribution a borrower pays towards the purchase price of a financed asset, reducing the amount the lender funds.

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Self-managed super fund (SMSF)

A self-managed super fund (SMSF) is a private superannuation fund of up to six members who run it themselves as trustees, taking on the fund's investment and compliance duties.

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Self-regulation

Self-regulation is the practice of an industry setting and enforcing its own conduct standards through voluntary codes rather than legislation; it is how most Australian commercial finance is governed.

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Serviceability

Serviceability is a lender's test of whether you can afford the repayments on a loan from your income, after living costs, existing debts and a rate buffer.

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Settlement

Settlement is the final stage of a finance deal, where the lender releases funds, security is registered and you take delivery of the asset.

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Shareholder

A shareholder is a person or entity that owns shares in a company, giving them a share of its profits and value while the directors run the business.

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Shariah finance

Shariah finance is a system of finance based on Islamic law that prohibits interest and requires asset-backed transactions, so returns come from trade, leasing or profit-sharing.

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Short term loan

A short term loan is credit with a relatively small principal and a short repayment horizon, usually twelve months or less.

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Simple interest

Simple interest is interest calculated only on the original principal, never on interest already added, which keeps the charge flat across the term.

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Small amount credit contract (SACC)

A small amount credit contract (SACC) is the statutory label for a small, short-term, unsecured consumer loan from a non-bank lender, typically a payday loan, with capped fees.

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Small and medium-sized enterprises (SMEs)

Small and medium-sized enterprises (SMEs) are businesses that fall below size thresholds set by government agencies, regulators and lenders, usually measured by employee headcount or aggregated annual turnover.

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Small-ticket lease

A small-ticket lease is an equipment lease for relatively low-value assets, where the lessor keeps legal title and you pay fixed lease payments over an agreed term.

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Soft asset

A soft asset is a business asset with limited resale or repossession value, such as a fit-out, IT hardware, office furniture or a software licence.

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Soft costs

Soft costs are the indirect expenses of a construction project: professional fees, approvals, finance and marketing costs that support delivery but are not built into the fabric.

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Soft loan

A soft loan is a loan on better terms than the market offers, such as a below-market interest rate, a longer term or a repayment grace period.

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Sole trader

A sole trader is the simplest Australian business structure: one person owns and runs the business, keeps the profits, and is personally liable for its debts.

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Specialist lenders for temporary residents

Specialist lenders for temporary residents are non-bank lenders, mortgage managers, credit unions and boutique banks that write home loans major banks decline on visa grounds.

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Spread (finance)

A spread is the difference between two related rates or prices, such as a lender's rate and its benchmark, or an asset's buy and sell price.

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Stage payment

A stage payment is a pre-agreed instalment of a building contract price, paid when a defined stage of work such as slab or frame is complete.

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Start-up

A start-up is a new business built to find a repeatable, scalable business model under uncertainty, marked by innovation, growth intent and rapid testing rather than steady income.

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Statutory demand

A statutory demand is a formal written demand for a company debt under the Corporations Act that, if ignored, creates a presumption of insolvency and can lead to liquidation.

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Stocking finance

Stocking finance is a short-term facility that funds a dealer's inventory unit by unit: the lender pays the supplier and the dealer repays each advance when that unit sells.

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Straight-line depreciation

Straight-line depreciation is a method that spreads an asset's cost, less its expected salvage value, evenly over its useful life so the same amount is deducted each year.

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Student visa loan eligibility

Student visa loan eligibility is the set of rules deciding whether a student visa holder can borrow from government schemes or private lenders, and on what conditions.

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Sub-broking

Sub-broking is a commercial arrangement where an individual or firm without its own licence introduces customers, generates leads or assists with transactions for a licensed broker or licence holder.

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Sub-prime

Sub-prime is the credit tier for borrowers and loans that carry materially higher risk than prime, because of a low credit score, unstable income, high debt or past defaults.

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Subordination

Subordination is an agreement that ranks one debt behind another, so the subordinated lender is paid only after the senior lender has been repaid.

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Superannuation

Superannuation is money set aside during your working life to fund retirement, held in a fund you generally cannot access until you reach preservation age.

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Superannuation guarantee rate

The superannuation guarantee rate is the percentage of an employee's qualifying earnings that an employer must pay into super, set at 12% for 2026-27.

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Supplier

A supplier is the party that sells the asset being financed, whether a vehicle dealer, equipment distributor, manufacturer or private seller, and is usually paid by the lender at settlement.

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