Glossary | Funding

GLOSSARY

Glossary

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There are 13 Terms in this directory beginning with the letter C.
Capital
Capital is money that is used to generate income or make an investment. For example, investors at Funding.com.au invest their ‘capital’ in the loans shown on the platform.

Capital Gain
Capital Gain is an increase in the value of an asset making it worth more than it was bought for. If a person buys a house for $300,000, and in 5 years they sell it for $500,000, the increase in value ($500,000-$300,000=$200,000) is the capital ‘gain’.

Capital Gains Tax (CGT)
CGT is tax on the profit when you sell an ‘asset’ that’s increased in value. It is the gain you make from the sale that is taxed. Investors with funding.com.au are not subject to CGT as all gains are income and not capital growth.

Cash Flow
Cash flow is the total amount of cash moving in and out of a business.

Commercial Property
Commercial Property is property used purely for business purposes.

Comparative Market Analysis
Comparative Market Analysis (CMA) is an analysis of all nearby recently sold homes which are comparable. This helps establish a price range for a house about to be put on the market. The licensed independent valuers that funding.com.au use, conduct CMA as part of their methodology to determine the value of a property.

Compound Interest
Compound interest is interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan. Interest from investments with funding.com.au are not compounding. See Simple Interest.

Court Judgement (CJ)
A Court Judgment is a court order sent by a Court to collect money on which you owe. It’s one of several methods creditors can take in the debt collection process.

Credit Rating
A Credit Rating is an assessment of the ability for an individual or organisation to meet their financial obligations. This is based on previous purchasing and spending history.

Credit Reference Agency
The Credit Reference Agency is a corporation which collects credit rating information for individuals and then provides this to financial companies in order for them to be able to understand an individual’s credit worthiness. An example of a credit reference agency is Equifax.

Credit Report
A Credit Report is a report detailing an individual’s credit history. This is prepared by a credit agency and can be used by a lender to determine how creditworthy an individual is in the loan application phase.

Credit Score
A credit score is used by lenders to determine whether you qualify for a particular credit card, loan, mortgage or service. For example, a credit score takes into account the amount of available credit your currently using, history of credit payments and public records.

Credit Search
A Credit Search, also known as a credit check is the process of evaluating an individual’s credit history in order to understand the likelihood that the individual will be able to meet their obligations.