Glossary

An economic indicator, usually a published interest rate.

Property used for industrial purposes, such as factories.

Industrial space available.

A contract (policy) in which an individual or business receives financial protection or reimbursement against losses from an insurance company.

Intangible Assets are business assets (other than cash or cash equivalents) that have value and generally are not physical assets. Examples of intangible assets are trade secrets, patents, trademarks, and copyrights. Good Will is also an intangible asset.

The sum paid for borrowing money, which pays the lender_s costs of doing business.

The interest on existing business debt that is paid to banks and creditors.

The rate that is charged or paid for the use of money; often expressed as an annual percentage of the principal.

Limits the interest rate or the interest rate adjustment to a specified maximum. This protects the borrower from increasing interest rates.

A short-term, temporary loan used until permanent financing is available. In a 504 transaction, there is a permanent loan and an interim loan. When the debenture funds, the SBA loan pays off the principal amount of the interim loan. Also referred to as a bridge loan.

A method of determining the annualized effective compounded return rate on an investment over time assuming a set of income, expense, and property value conditions as well as risk. It combines the present worth of the right to receive future income streams with the present worth of the right to receive a particular profit when the property is sold.

The raw materials, work-in-process goods and completely finished goods that are ready or will be ready for sale. Inventory represents one of the most important assets that most businesses possess because the turnover of inventory represents one of the primary sources of revenue generation and earnings.