Business / Debt Glossary

Quick Assets: Cash and other assets which can or will be converted into cash fairly soon, such as accounts receivable and marketable securities; or equivalently, current assets minus inventory.

Re Mortgage: To re mortgage is arranging alternative finance for the purchase of a property which is already mortgaged.

Real Asset: An asset that is valuable because of its utility, such as real estate or physical equipment.

Receiver: A person appointed by a court to finalize the affairs of a company and to utilise assets to pay its creditors

Repayment Mortgages: A mortgage where throughout the term, regular payments are made to partly repay interest on the capital and to partly repay the capital itself (the amount of the loan). Initially the largest . . . View Full Definition

Revenue Account: An investment trust term referring to analysis of investment income.

Reverse Mortgage: An arrangement in which a homeowner borrows against the equity in his/her home and receives regular monthly tax-free payments from the lender.

Roll Over Mortgage: Mortgage for which the unpaid balance is refinanced every few years at then-current rates is a roll over mortgage. This is good for the borrower and bad for the lender if interest rates are . . . View Full Definition

Salary: Wages received on a regular basis, usually weekly or monthly. Sometimes the term is used to include other benefits, including insurance and a retirement plan.

Savings Account: An account with a bank or financial institution which pays interest on balances held, usually once or twice per year, the amount of interest paid usually depends on to the amount of money in . . . View Full Definition

Second Mortgage: A second mortgage is taking out a mortgage on a property which is already mortgaged. This can be used to raise capital if the property has significantly increased in value and would involve . . . View Full Definition

Secured Loan: A loan which is backed up by assets belonging to the borrower (normally property) in order to decrease the risk taken on by the lender. Mortgages and some personal loans are secured loans. I . . . View Full Definition

Sole Trader: An individual proprietor of the simplest form of business, e.g. a shop owned and run by a single person.

Standing Order: An instruction you give to your bank or building society to make regular payments from your account to a specific company. This is a fixed amount unlike a direct debit which can vary.

Surplus Income: This means the amount of money which you have left over when you subtract necessary expenditure from your income.

Tax Codes: Under the PAYE system of taxing income, tax codes are allocated annually to employees. These codes enable the employer to deduct tax at the correct rate from salaries or wages on a monthly ( . . . View Full Definition

Tax Credits: Tax you receive back in certain circumstances, e.g. pension credit, child tax credit and working tax credit.

Taxable Earnings: The amount of an individual's annual income on which tax is payable defined as: Taxable earnings = Income - Reliefs - AllowancesThird PartyA third party is the person who claims against an i . . . View Full Definition

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