Glossary

Accounts payable are business debts that must be paid off within a relatively short period of time, as opposed to long term debt such as mortgage loans and equipment loans. Accounts payable are short term or current liabilities (debts) as opposed to mortgage loans and equipment loans that are reported on the balance sheet as long term liabilities.

Money owed by customers for goods or services that have been delivered or used, but not yet paid for. On a company's balance sheet, accounts receivables are recorded as current assets.

These are assets on the balance sheet, other than cash, fixed assets (such as real estate, machinery & equipment, inventory) and include such items as accounts receivable, goodwill, and prepaid expenses.

These are liabilities on the balance sheet such as accounts payables, interest and taxes that are owed but not yet paid or payable.

A 2 dimensional measure of land equaling 160 square rods, 10 square chains, 4,840 square yards, or 43,560 square feet.

A mortgage with an interest rate that changes periodically, according to an index that is selected when the mortgage is issued. The initial interest rate is lower than that of fixed-rate mortgages, but monthly payments can go up or down as the rate is adjusted.

The period of time between changes in the interest rate for an adjustable-rate mortgage. Typical adjustment intervals are 6 months and one year.

Business concerns, organizations, or individuals that control each other or that are controlled by a third party. Control may include shared management or ownership; common use of facilities, equipment, and employees; or family interest. The calculation of a firm_s size includes the employees or receipts of all affiliates. Affiliation with another business concern is based on the power to control, whether exercised or not. Such factors as common ownership, common management and identity of interest (often found in members of the same family), among others, are indicators of affiliation. Power to control exists when a party or parties have 50 percent or more ownership. It may also exist with considerably less than 50 percent ownership by contractual arrangement or when one or more parties own a large share compared to other parties. The affiliated business concerns need not be in the same line of business.

In appraisal, the non-monetary benefits derived from property ownership.

The amount of principal reduction (repayment) on a loan or debt. Amortization payments are generally regular payments (usually monthly), made to reduce the debt along with the interest payments over the term of the loan. The term Amortization is used in connection with the periodic expensing of the cost or value of an intangible asset such as patents, trademarks or copyrights (similar to depreciation of a tangible assets well as prepaid expenses, such as subscription revenue whereby the amount prepaid is periodically included in income over the life of the subscription or prepaid expense.

The period or length of time over which the principal portion of a mortgage loan is scheduled to be paid down through periodic payments.

Refers to a piece of commercial real estate property, which will serve as the main tenant in a shopping center.

A long term, credit worthy tenant. The presence of one or more anchors" enhances the value and the ability to obtain financing for a shopping center. "

Annual Interest Rate is sometimes described as the stated or simple interest rate on a loan, as opposed to the Annual Percentage Rate or APR. It may not reflect the true cost of the loan - See APR.

The Annual Percentage Rate or APR is often referred to as the effective rate of interest since it will include the effects of the compounding of interest (see Compound Interest) and may include the cost of upfront fees. The APR generally reflects the true cost of the loan over its full term.

A professional opinion of the market value of a property, such as a home, business, or other asset, whose market price is not easily determined.

The value placed on an item, product or business by an appraiser, recognized for experience in a particular field.

Asset Based Financing can be either working capital or term loans secured by assets such as accounts receivable, real estate, equipment, inventory etc. Factoring is also a form of asset based financing.

Type of senior housing that is typified by independent living and limited assistance to its renters.

A mortgage loan which can be transferred to another person without a change in the terms of the loan.

The act of assuming/undertaking another_s debts or obligations.

When used in connection with business loans these are the fees generally paid by the borrower to legal counsel representing the borrowing entity and the lender for legal documentation and preparation for the closing of a loan.

The square feet available for lease.

Percentage of currently rented units in a building, city, neighborhood or complex.

A hotel rate used to evaluate the average daily rate of a hotel inclusive of vacancy and seasonality.