Credit Application Unit key Terms

3. entitles holder to a portion of a business’ profits
5. Debt that includes a legal obligation by the borrower to repay the debt personally if the business is unable to make its scheduled debt payment
7. good that are pledged to the bank in case loan payment cannot be made
8. Internet phenomenon, where strangers learn about a business online and then decide whether or not to make an investment
11. Something of value; Anything worth money.
12. shares of ownership in a company
13. A loan that provides the borrower a maximum amount of money he/she can borrower
16. revenues after costs
17. An obligation you have to pay someone else money. Also called a debt or a loan.
19. Individuals that make small investments; “friends and family,”
22. cash, stocks, bonds; can quickly be turned into cash
24. Money paid by a company to a person who owns stock in that company.

1. The 12 month period a company uses to report financial results.
2. assets not already pledged to repay another loan
4. one who promises to repay a loan in the event that the debtholder can't make a required payment.
6. A person or a business with a strong credit score that make it likely they will be able to repay any loan.
9. The money a person borrows to buy real estate.
10. The date a loan (or debt or liability) is repaid in full.
13. right to take possession of collateral until a debt is repaid
14. Money earned when something is sold
15. Debt obtained from a number of online companies.
18. an investment worth money
20. Another type of debt (or money you owe someone else) other than a mortgage
21. Cash or securities that can be immediately turned into cash,
23. A legal agreement that an assets is part of a guarantee to a lender