Glossary | Funding



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There are 10 Terms in this directory beginning with the letter S.
Second Charge
Second Charge is a legal charge registered against a property as a way of securing a debt. They are known as secondary charges as they have secondary priority behind the first charge (usually a mortgage).

Second Registered Mortgage
A second registers mortgage is a mortgage taken out on a property which is already mortgaged. Loans with second mortgages as the security are significantly higher investment risk as lenders are second in line to recover funds after the first mortgage lender. There is a greater chance that lenders aren’t able to recover all of their funds. See also Mezzanine Financing.

Secured Lending
Secured Lending is lending to a borrower which has secured an asset as collateral for the loan. For example, only do secured lending as all of our loans are secured by first charge over a property.

Secured loan
A Secured Loan is a loan whereby the borrower provides an asset (e.g property) as collateral for the loan, which then becomes a secured debt owed to the loan provider if the borrower was to default. Here at all of our loans are secured over a property located within Australia.

Self-Managed Super Fund (SMSF)
A self-managed super fund (SMSF) is a superannuation trust structure that provides benefits to its members upon retirement. The main difference between SMSFs and other super funds is that SMSF members are also the trustees of the fund. It is a common practice for investors to register their SMSF as the entity in which they will invest from with the platform.

Senior Debt
Senior Debt is the debt on a loan that must be paid first.

Simple Interest
Simple interest is the amount of interest earned on the original amount of money invested. Simple interest is paid out as it is earned and does not become part of an account’s interest-bearing balance. The invested amount is called principal. Let’s say you invest $5,000 (the principal) at an annualised interest rate of 7.5 percent. Multiplying the principal by the interest rate gives you an interest payment of $375. This is your simple interest. At, investors are paid their interest monthly. In this example you would receive $31.25 per month on your $5,000 investment.

Special Purpose Vehicle (SPV)
Special Purpose Vehicles also known as SPVs are entities that are usually created as subsidiary companies in order to isolate financial risk. Thus, if the parent company is to go bankrupt the assets of the SPV are still secure. Corporate entities in the form of SPVs are the preferred structure for property developers to purchase and own separate property developments.

Statutory Foreclosure
The process by which the borrower’s rights in the property are extinguished and the lender becomes the legal owner of the property.

Subordinated Debt
Subordinated Debt is the debt on a loan that will be paid out after the senior debt has been paid.