Production payment financing

Similar financial terms

Production-flow commitment
An agreement by the loan purchaser to allow the monthly loan quota to be delivered in batches.

American Production and Inventory Control Society
American Production and Inventory Control Society (APICS) is a not-for-profit international educational organization respected throughout the world for its education and professional certification programs.

Lean production
Lean production is a range of management techniques that aim to make business more efficient in its use of resources. This minimises waste, reduces costs, increases productivity and should expand margins.

Zero prepayment assumption
The assumption of payment of scheduled principal and interest with no payments.

Single-payment bond
A bond that will make only one payment of principal and interest.

Prepayments
Payments made in excess of scheduled mortgage principal repayments.

Prepayment speed
Also called speed, the estimated rate at which mortgagors pay off their loans ahead of schedule, critical in assessing the value of mortgage pass-through securities.

Payment-In-Kind (PIK) bond
A bond that gives the issuer an option (during an initial period) either to make coupon payments in cash or in the form of additional bonds.

Payments pattern
Describes the lagged collection pattern of receivables, for instance the probability that a 72-day-old account will still be unpaid when it is 73-days-old.

Payments netting
Reducing fund transfers between affiliates to only a netted amount. Netting can be done on a bilateral basis (between pairs of affiliates), or on a multi-lateral basis (taking all affiliates together).

Payment float
Company-written checks that have not yet cleared.

Payment date
The date on which each shareholder of record will be sent a check for the declared dividend.

Lag response of prepayments
There is typically a lag of about three months between the time the weighted average coupon of an MBS pool has crossed the threshold for refinancing and an acceleration in prepayment speed is observed.

Balance of payments
A statistical compilation formulated by a sovereign nation of all economic transactions between residents of that nation and residents of all other nations during a stipulated period of time, usually a calendar year.

Break-even lease payment
The lease payment at which a party to a prospective lease is indifferent between entering and not entering into the lease arrangement.

Break-even payment rate
The prepayment rate of a MBS coupon that will produce the same CFY as that of a predetermined benchmark MBS coupon. Used to identify for coupons higher than the benchmark coupon the prepayment rate that will produce the same CFY as that of the benchmark coupon; and for coupons lower than the benchmark coupon the lowest prepayment rate that will do so.

Clearing House Automated Payments System (CHAPS)
A computerized clearing system for sterling funds that began operations in 1984. It includes 14 member banks, nearly 450 participating banks, and is one of the clearing companies within the structure of the Association for Payment Clearing Services (APACS).

Clearing House Interbank Payments System (CHIPS)
An international wire transfer system for high-value payments operated by a group of major banks.

Coupon payments
A bond's interest payments.

Threshold for refinancing
The point when the WAC of an MBS is at a level to induce homeowners to prepay the mortgage in order to refinance to a lower-rate mortgage, generally reached when the WAC of the MBS is 2% or more above currently available mortgage rates.

Project financing
A form of asset-based financing in which a firm finances a discrete set of assets on a standalone basis.

Planned financing program
Program of short-term and long-term financing as outlined in the corporate financial plan.

Off-balance-sheet financing
Financing that is not shown as a liability in a company's balance sheet.

Net financing cost
Also called the cost of carry or, simply, carry, the difference between the cost of financing the purchase of an asset and the asset's cash yield. Positive carry means that the yield earned is greater than the financing cost; negative carry means that the financing cost exceeds the yield earned.

Multi-option financing facility
A syndicated confirmed credit line with attached options.

Back-to-back financing
An intercompany loan channeled through a bank.

Bridge financing
Interim financing of one sort or another used to solidify a position until more permanent financing is arranged.

Cost of lease financing
A lease's internal rate of return.