Glossary | Funding

GLOSSARY

Glossary

All | # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
There are 16 Terms in this directory beginning with the letter I.
Illiquid Asset
An Illiquid Asset is one that cannot be sold easily. There is usually a lack of investors willing to buy this asset.

In-Fill Development
In-Fill Development is the development of land that is surrounded by developments/buildings in an existing community. Thus, the term ‘In-Fill’ implies the new development is filling in the gaps.

Income Multiples
An Income Multiple is the factor by which a lender will multiply a borrower’s gross annual salary to determine their borrowing capability.

Income/Investment Property
An Income Property is one that has been developed or brought for the purpose of renting out to create additional income.

Indemnity Policy
An Insurance Policy that protects business owners and employees when they are found to be at fault due to an error.

Individual Voluntary Arrangement
An Individual Voluntary Arrangement (IVA) is an agreement made with creditors to pay of parts of an individual’s debt. It is a formal alternative for individuals wanting to avoid bankruptcy.

Industrial Property
Industrial property is a form of commercial property that is designed for the use of manufacturing or warehousing for example. An example of industrial property is a warehouse that is used to manufacture cars.

Inflation
Inflation is the rate at which prices for goods and services increases. The Reserve Bank of Australia try to limit inflation and prevent deflation to ensure the economy runs effectively. The reason a schooner of beer cost $5 last year and is now $7, is due to inflation. This may be caused by small increases in the ingredients of the beer, or the rents charged to the venue owner, so they must increase their price to cover these costs. This generally upward trend in prices is the inflation.

Institutional Lending
Institutional Lending is a loan that is provided by a lender that is regulated by law.

Interest
Interest is the charge payable for borrowing money, or the money earned on an investment. You will often see interest presented as an annual percentage rate, for example 8 per cent per annum (8%pa).

Interest Cover Ratio
Interest Coverage Ratio is used to measure a companies or individual’s ability to pay interest on their debt. It is calculated by dividing the company’s earnings before interest and taxes by the interest expense.

Interest Statement
A document stating the amount of interest earned during a defined period.

Interest-Only Loan
An Interest-Only Loan is a loan whereby the borrower only pays interest on the principle balance.

Intermediaries
Intermediaries, sometimes referred to as mortgage brokers, are professionals who act as a middleman between two parties. For example, an intermediary may liaise with Funding.com.au to obtain property finance on behalf of their client.

Investment Opportunities
An Investment Opportunity can occur in any situation where an individual is offered the option to buy and asset/security or to invest in a loan with the expectation of a financial return.

Investor
An Investor is a person who invests money with the expectation of a financial return.