We are here to help you. From A to Z, our glossary has got you covered.
An Accredited Investor (AI) is someone who meets the requirements set out by the Monetary Authority of Singapore (MAS) and has opted in to be treated as an Accredited Investor by financial institutions. Accredited investors are assumed to be better informed and better able to access resources to protect their own interests.
Eligible individual clients must complete the AI form and meet at least 1 of the following 3 criteria:
With net assets exceeding $10 million in value (or its equivalent in a foreign currency) or such other amount as the Authority may prescribe, in place of the first amount, as determined by
Of such trust as the Authority may prescribe, when acting in that capacity; or
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Third-party professional appointed to facilitate administerial tasks of the loan and act as an intermediary between the borrower and lender(s).
Accounting technique used to periodically lower the book value of a loan or an intangible asset over a set period of time.
Type of financial investment that is collateralized by an underlying pool of assets—usually ones that generate a cash flow from debt, such as loans, leases, credit card balances, or receivables.
A unit of measure used in finance to describe the percentage change in the value or rate of a financial instrument, and one basis point is equivalent to 0.01% (1/100th of a percent) or 0.0001 in decimal form.
Individual or entity that is using money, assets, or services on credit.
Spreadsheet or table that shows the equity capitalization for a company.
Metrics measuring the implied amount of time, usually in months/years that a company can continue operating at a loss before depleting its cash on hand.
Collateral in the financial world is a valuable asset that a borrower pledges as security for a loan.
Condition or event that must come to pass before a specific contract, usually a loan agreement, is considered in effect or any obligations are expected of either party.
In a loan agreement or facility agreement, a condition that must be satisfied by the borrower within a set time period following drawdown.
Debt Covenants are conditional terms in lending agreements to ensure the borrower’s financial performance remains steady and management continues to be responsible when making corporate decisions.
Something, usually money, owed by one party to another. Debt is used by many individuals and companies to make large purchases that they could not afford under other circumstances.
Evaluate a company’s financial leverage and is calculated by dividing a company’s total liabilities by its shareholder equity.
Failure to make required interest or principal repayments on a debt, whether that debt is a loan or a security.
Describe money paid into a business' operating budget, the delivery of a loan amount to a borrower, or the payment of a dividend to shareholders.
A contract between a borrower, one or several lenders and any other parties involved. The agreement sets out the terms and conditions of the loan. It's often simply called a loan, credit facility agreement.
The money a company has left over after paying its operating expenses (OpEx) and capital expenditures (CapEx).
Individual or Corporate who commits to pay a borrower's debt in the event that the borrower defaults on their loan obligation.
Investment strategy that aims to generate specific beneficial social or environmental effects in addition to financial gains.
Amount a lender charges a borrower and is a percentage of the principal—the amount loaned. It is usually specified on a per-annum basis.
Metric used in financial analysis to estimate the profitability of potential investments.
Raw materials used in production as well as the goods produced that are available for sale.
An Investment Memorandum is also known as a investment deck. It is used as a tool to attract external investors, either specifically targeting a known group or just soliciting willing investors in general. The document enables the investor to understand in detail the investment, so as to help them assess their interest in participating in the deal.
Standard in the investment industry that ensures advisors can verify a client's identity and know their client's investment knowledge and financial profile.
Efficiency or ease with which an asset or security can be converted into ready cash without affecting its market price.
Date on which the life of a transaction or financial instrument ends, after which it must either be renewed or it will cease to exist.
Measures investment returns by comparing the value of an investment on the exit date to the initial investment amount.
Net value of an investment fund's assets less its liabilities, divided by the number of shares outstanding.
Financial institutions that offer various banking services but do not have a banking license.
The borrower who has the obligation to repay the loan.
Financial ratio enabling the assessment of the loan portfolio quality of a non-bank financial institution. The PAR30 or PAR90 ratio is calculated by dividing the outstanding balance of all loans with arrears over 30/90 days by the outstanding gross loan portfolio and is expressed as a percentage.
Financial institution that holds the collateral on behalf of the lenders under a syndicated loan agreement as security for performance of the borrower's obligations under the loan agreement.
At the time of winding up or bankruptcy of a company, it needs to repay its debts. The order in which these are repaid referred to Seniority. Therefore, a senior lender would technically be repaid before a junior lender.
Length of time remaining before a financial contract expires, in this case a loan.
Analytical process of determining the current (or projected) worth of an asset or a company.
Legally binding provision where either party in a contract agrees to voluntarily forfeit a claim without the other party being liable.
Earnings generated and realized on an investment over a particular period of time.
