Glossary

A lien is a legal right granted by the owner of property, by a law or otherwise acquired by a creditor. A lien serves to guarantee an underlying obligation, such as the repayment of a loan.

A limited liability company (LLC) is a corporate structure whereby the members of the company cannot be held personally liable for the company's debts or liabilities. Limited liability companies are essentially hybrid entities that combine the characteristics of a corporation and a partnership or sole proprietorship.

A limited recourse debt is a debt in which the creditor has limited claims on the loan in the event of default. Limited recourse debt sits in between secured bonds and unsecured bonds in terms of the backing behind the loan.

The maximum amount you can borrow under a line of credit.

A line of credit and revolving credit are financial arrangements made between the lending institution and a business or an individual. The lender provides access to funds that you can draw down, borrow and repay at your discretion.

In finance and economics, liquidation is an event that usually occurs when a company is insolvent, meaning it cannot pay its obligations as and when they come due. The company’s operations are brought to an end, and its assets are divvied up among creditors and shareholders, according to the priority of their claims.

The period of time it takes a liquidator, secured creditor or owner to liquidate the assets of the business. Each asset class will have a different estimated liquidation timeframe.

Liquidity describes the degree to which an asset or security can be quickly bought or sold in the market without affecting the asset's price.