An official notification to a borrower from a lender indicating that the borrower's loan application has been approved and stating the terms of the prospective loan.
External funds are financial resources that a company secures from outside its organization to support its operations, typically through means like bank loans, bond offerings, or venture capital infusions.
A liability that is shared by a group, where each member can be held responsible for the entire obligation if other members fail in their undertaking. Commonly found in partnerships and co-signed agreements.
A loan application is a document required by a lender prior to issuing a loan commitment. It typically includes details such as the name of the borrower, the amount and terms of the loan, a description of the collateral, and the borrower's financial and employment data.
The loss ratio measures the ratio of losses incurred (or loans losses for banks) to either total premiums earned by an insurer or the overall receivables or debts for a corporation within a specific period, often one year.
A payable is an amount that is owed by a company to its suppliers or creditors, typically from the purchase of supplies or inventory (accounts payable), but it can also include amounts owed for other purposes such as bank loans (bank loans payable).
Regulation U is a rule of the Securities and Exchange Commission (SEC) that governs the maximum amount of credit that banks may extend for the purchase of regulated securities.
