Glossary
Welcome to SFNet's Secured Finance Glossary of industry terms. Currently the SFNet Glossary has over 400 industry terms and definitions. You can search specific terms in the search tool above, or use the alpha tool below and progress on the paginations.
Aged Inventory 
Inventory which is stale or out of season as a result of not being sold for an extended period of time.
Agent
A lender who is assigned a specific role under a loan document. Agents include administrative, collateral, documentation, and syndication agents.
Aging
A schedule of accounts sorted by the month of an invoice’s original billing date.
Airball
The portion of an asset based loan which is not covered by collateral. Also known as a "stretch" or SOFA (secured over formula advance).
Allowance for Bad Debt
A contra-asset account on a company's balance sheet based on the amount of accounts receivable it expects to be unable to collect.
Amendment
A change to an existing provision of a loan agreement.
Amortization
The amount of principal on a term loan that a Borrower is contractually required to pay periodically under a loan agreement.
Appraisal/Appraisal Report
A third party valuation of collateral, including inventory, equipment, or property, often which determines the collateral value in a Borrowing Base (prior to applying an advance rate).