Assets – An economic resource controlled by the buyer. Often used as security in
the business loan approval process.
Business plan – Analyzes the market and industry that your business will function
in, and it provides a comprehensive assessment of your marketing, management and financial plan.
Drawn up by the buyer previous to pursuing a commercial loan, in order to convey the overall
concept of their business and how it will be handled.
Credit – Refers to the process of granting a loan and creating debt.
Credit history – A record of an entity’s past financial behavior, including past
borrowing and repayment. The credit history conveys any financial problems, including bankruptcy,
which the entity has encountered in the past. The credit history is a major factor in the business
loan approval process.
Debt – Money that is owed.
Financial institution – An entity that provides financial services for a client,
including business loans.
Interest – The money that a lender receives for providing business loans.
Principal – The original sum of money that lender provides for a
business loan.
SBA – Small Business Association.
