There are 18 Terms in this directory beginning with the letter A.
An accredited investor is a term used to refer to financially sophisticated or wholesale investors who have a special status under financial regulation laws. An example of an accredited investor could be a high-net-worth individual, a bank or a large corporation. Funding.com.au is licensed to accept retail investor funds, so there isn’t a requirement to have an accreditation process.
Accrue refers to the ability for something to grow over time (accumulate). In finance and property, it is most frequently used when referring to interest.
Adverse or impaired credit is a term used to describe a poor track record of repayment history on credit cards or loans. This is reflected in an individual’s credit report. Funding.com.au takes into consideration adverse credit during our approval process.
Amortisation is paying off one’s debt through regular payments over a set period of time. Consumers often encounter amortisation when paying off a home mortgage or car finance. For instance, if you were to borrow from Funding.com.au you would encounter amortisation as we request that loans be paid in monthly instalments.
An anchor tenant is the individual or person who is serving as the main attraction in a commercial property. For example, if a retail centre has one large department store in the middle of it, the department store may be considered the anchor tenant.
In direct contrast to an anchor tenant, ancillary tenants are the smaller tenants of commercial space.
Annual percentage rate
The annual percentage rate (APR) is the annual rate that is charged for borrowing. It is a percentage that shows the yearly cost of funds over the term of a loan.
Annualised target returns (loan)
The annualised return is the net return per annum of each loan. For example, on the Funding.com.au platform annualised returns typically range from 7% up to 9% per annum.
Anti-money laundering (AML) & Counter-Terrorism Financing (CTF) checks
Anti-money laundering checks are an essential part of the Know Your Customer (KYC) procedure which help prevent money laundering, identity theft and identity fraud. In practice, they involve collecting a customer’s name, date of birth, an official document confirming their identity and a residential address. At Funding.com.au, we take our AML checks very seriously to ensure our customers are always protected. For example, at the point of an investor registering we may require extra documents, such as passports, driver licences, Medicare cards, utility bills and bank statements to assist in the verification of investors.
Appraisal is the valuation of a property conducted by a licenced independent valuer.
Appreciation is the increasing value of an asset or security over time. For example, vintage cars increase in price as they get older due to a restricted supply, this is known as appreciation.
Interest is paid in arrears. This means the interest payment will pay the interest for the month immediately preceding the payment due date
Asset-backed security (ABS)
An ABS is a security backed by receivables, a loan or a lease. These can be an alternative to investing in corporate debt. In the mortgage industry this is usually referred to Residential Mortgage Backed Security (RMBS) or Commercial Mortgage Backed Security (CMBS) and can often also be referred to as ‘secured’ lending.
An asset can be classed as anything with a financial value that will provide a future benefit to the owner. For example, owning a property is commonly seen as owning an asset, as it is assumed the value of a property will increase with time.
Australian Government Deposit Guarantee (AGDG)
The Australian Government has guaranteed deposits up to $250,000 in Authorised Deposit-taking Institutions (ADIs) such as your bank, building society or credit union. This means that this money is guaranteed if anything happens to the ADI. Funding.com.au is not an ADI and your funds are therefore not guaranteed by the government under this policy.
Australian Securities and Investments Commission (ASIC)
The Australian Securities and Investments Commission (ASIC) is an independent Australian government body that acts as Australia’s corporate regulator. ASIC’s role is to enforce and regulate company and financial services laws to protect Australian consumers, investors and creditors. Funding.com.au is regulated by ASIC.
Authorised Deposit-taking Institutions (ADI)
Financial institutions in Australia are only permitted to accept deposits from the public if they are Authorised Deposit-taking Institutions. The ADI’s authority is granted by the Australian Prudential Regulation Authority (APRA) under the Banking Act 1959. Funding.com.au is not an ADI as we do not offer savings products which take deposits. Your funds are for investment purposes which is different from savings.
Available (Loan Amount)
Available Loan Amount shows the amount remaining to be invested in each loan. For example, a loan was for $800,000 but $500,000 has been sold to investors, therefore you can invest a minimum of $1,000 in this loan or a maximum of $300,000 as that is the ‘available’ amount remaining.