a debt that ranks after other debts if a company falls into liquidation or bankruptcy.

the period of time in which an investment is in force. For example, a term loan is a loan for a specific amount that has a specific repayment schedule and a fixed or floating interest rate.

contractor accounting term for an expense item that is not considered direct construction cost. Those expenses not involving actual physical property, such as engineering and legal fees.

otherwise known as secured loans. Assets are promised to the lender by the borrower, to be collected in the event of default.

a loan in which the borrower pledges and asset as collateral for the loan.

the measure of a company’s ability to meet short-term financial liabilities. Cash plus marketable securities, plus accounts receivable divided by current liabilities.

property exclusive of land or buildings. Property that can be moved.

common unit of measure for interest rates, each point representing 1% of the amount of the loan.

a clause in a loan contract stating a penalty will be assessed if the debt is prepaid within a certain time period. It is based on a percentage of the remaining loan balance or a certain months’ worth [..]

the amount due on a formal, written promise to pay a debt.