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Finance terms starting with U

7 terms starting with U

Underwriting

Underwriting is the process a lender or insurer uses to verify an application, assess the risk and decide whether to approve, decline, or approve with conditions and pricing.

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Unfair contract terms

Unfair contract terms are clauses in a standard form contract that significantly favour one party, are not reasonably necessary to protect that party, and would cause detriment.

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Unincorporated business

An unincorporated business is a business that has no separate legal personality, so its owners contract in their own names and are personally liable for its debts.

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Unregulated agreement

An unregulated agreement is a loan or other credit arrangement that sits outside the NCCP Act, usually because the credit is wholly or mainly for business purposes.

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Unsecured loan

An unsecured loan is credit you borrow without pledging collateral, so the lender relies on your income, credit history and capacity to repay.

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Upgrade

An upgrade is an agreed change that improves or replaces what a contract delivers, including a move into a newer asset under a lease or hire agreement.

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Useful life

Useful life is the period an asset is expected to be available for use by a business, and the number of years over which its cost is depreciated.

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