Capitalised interest
Interest added to the outstanding loan balance rather than paid in cash when it accrues.
Funding glossary
Common business-funding terms in plain English.
This glossary is a general starting point. The meaning and effect of a term in an actual facility depends on the final contract and circumstances.
Cash-flow forecast
An estimate of future cash receipts and payments over defined periods.
Covenant
A contractual promise or condition the borrower agrees to observe.
Debtor days
A measure of how long customers take to pay amounts owed.
Director penalty notice (DPN)
An ATO notice used in the director penalty regime for certain unpaid company tax and super obligations. Directors should obtain professional advice immediately if one is issued.
Enterprise value
A valuation concept for the value of a business's operations before considering how it is financed.
GIC
General interest charge that can apply to unpaid ATO liabilities.
Loan-to-value ratio
A comparison between a loan amount and the value of specified security or assets.
PPSR
The Personal Property Securities Register, used to register certain security interests in personal property.
R&D Tax Incentive
An Australian Government self-assessment program providing tax offsets for eligible R&D entities, activities and expenditure.
Security
Rights granted to a lender over assets or other property to support repayment obligations.
Working capital
Capital used to support day-to-day operating needs and timing differences between cash receipts and payments.
General information only. Contract definitions control. Obtain professional advice where a legal, tax or accounting interpretation matters.