Revolving line of credit
A bank line of credit on which the customer pays a commitment fee and can take down and repay funds according to his needs. Normally the line involves a firm commitment from the bank for a period of several years. |
Similar financial terms
Revolving credit agreementA legal commitment wherein a bank promises to lend a customer up to a specified maximum amount during a specified period.
Bottom line
The net profit of a company
Swingline facility
Bank borrowing facility to provide finance while the firm replaces U.S. commercial paper with eurocommercial paper.
Straight line depreciation
An equal dollar amount of depreciation in each accounting period.
Simple linear trend model
An extrapolative statistical model that asserts that earnings have a base level and grow at a constant amount each period.
Simple linear regression
A regression analysis between only two variables, one dependent and the other explanatory.
Security market line
Line representing the relationship between expected return and market risk.
Security characteristic line
A plot of the excess return on a security over the risk-free rate as a function of the excess return on the market.
Old-line factoring
Factoring arrangement that provides collection, insurance, and finance for accounts receivable.
Mortgage-pipeline risk
The risk associated with taking applications from prospective mortgage borrowers who may opt to decline to accept a quoted mortgage rate within a certain grace period.
Mortgage pipeline
The period from the taking of applications from prospective mortgage borrowers to the marketing of the loans.
Log-linear least-squares method
A statistical technique for fitting a curve to a set of data points. One of the variables is transformed by taking its logarithm, and then a straight line is fitted to the transformed set of data points.
Linear regression
A statistical technique for fitting a straight line to a set of data points.
Linear programming
Technique for finding the maximum value of some equation subject to stated linear constraints.
Line of credit
An informal arrangement between a bank and a customer establishing a maximum loan balance that the bank will permit the borrower to maintain.
Multicolinearity
One variable is the expression of the other
Bank line
Line of credit granted by a bank to a customer.
Capital market line (CML)
The line defined by every combination of the risk-free asset and the market portfolio.
Cash flow time-line
Line depicting the operating activities and cash flows for a firm over a particular period.
Characteristic line
The market model applied to a single security. The slope of the line is a security's beta.
Pipeline
A type of risk often associated with mortgages. It occurs from the time an application is accepted to the sale of the asset. Some analysts partition this process into two parts: production and inventory. Production starts at the time of the application and continues until the closing of the mortgage. Inventory risk starts at the closing and continues until the product is hedged or sold. Different hedging techniques are suggested for the two partitions.
Trendline
In charting, a line drawn across the bottom or top of a price chart indicating the direction or trend of price movement. If up, the trendline is called bullish; if down, it is called bearish.
Creditors, short
This is all current liabilities payable on demand or within one year of the Balance Sheet date. For Banks this also includes short term bank liabilities such as deposits.
Creditors, long
This is all liabilities payable more than one year after the Balance Sheet date. This includes provisions and deferred taxation, loans and debt, including convertible debt, repayable more than one year after the Balance Sheet date.
Deferred credits
Deferred income listed in the liability section of the balance sheet.
Trade credit
Credit granted by a firm to another firm for the purchase of goods or services.
Retail credit
Credit granted by a firm to consumers for the purchase of goods or services.
Letter of credit (L/C)
A form of guarantee of payment issued by a bank used to guarantee the payment of interest and repayment of principal on bond issues.
Best-interests-of-creditors test
The requirement that a claim holder voting against a plan of reorganization must receive at least as much as he would have if the debtor were liquidated.
Comparative credit analysis
A method of analysis in which a firm is compared to others that have a desired target debt rating in order to infer an appropriate financial ratio target.
Consumer credit
Credit granted by a firm to consumers for the purchase of goods or services. Also called retail credit.
Credit analysis
The process of analyzing information on companies and bond issues in order to estimate the ability of the issuer to live up to its future contractual obligations.
Credit enhancement
Purchase of the financial guarantee of a large insurance company to raise funds.
Credit period
The length of time for which the customer is granted credit.
Credit risk
The risk that an issuer of debt securities or a borrower may default on his obligations, or that the payment may not be made on a negotiable instrument.
Credit scoring
A statistical technique wherein several financial characteristics are combined to form a single score to represent a customer's creditworthiness.
Crediting rate
The interest rate offered on an investment type insurance policy.
Creditor
Lender of money.
Fair Credit Reporting Act
A consumer protection law that regulates the disclosure of consumer credit reports by consumer/credit reporting agencies and establishes procedures for correcting mistakes on one's credit record.
Equal Credit Opportunity Act (ECOA)
A federal law that requires lenders and other creditors to make credit equally available without discrimination based on race, color, religion, national origin, age, sex, marital status, or receipt of income from public assistance programs.
