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.
Excess Inventory 
Excess inventory, sometimes also know as slow moving inventory or obsolete inventory, is unsold product that: 1. exceeds the projected consumer demand (usually determined based on the prior 12 months actual usage or projected usage over the subsequent 12 months period); 2. has not been sold in 12 months; 3. Inventory relating to cancelled products or product lines; 4. Is customer specific for a former customer.
Exchange Rate
Price for which the currency of a country can be exchanged for another country's currency.
Exit Strategies
A business owner's strategic plan to sell his or her investment in a company. An exit strategy gives a business owner a way to reduce or eliminate his or her stake in the business and, if the business is prosperous, make a substantial profit. If the business is a failure, an exit strategy enables the entrepreneur to limit losses.
Export Letters of Credit
A payment method commonly used in international trade transactions, whereby the advising bank facilitates payment to the exporter - provided the exporter complies with the terms and conditions of the letter of credit.
External Obsolescence
External Obsolescence “is an element of depreciation; a defect, usually incurable, caused by negative influences outside a site and generally incurable on the part of the owner, landlord, or tenant.”1
Extraordinary Assumption
An assumption, directly related to a specific assignment, which, if found to be false, could alter the appraiser's opinions or conclusions.