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.
Production Part Approval Process (PPAP) 
Commonly used in the automotive parts manufacturing business. Under a PPAP billing, the invoice is not payable until the part has been approved and title does not transfer until approval has been granted.
Progress Billing
Progress Billings are a series of billings, usually following the percentage of completion of a large project under a long-term contract.
Protective Advance
A Protective Advance is an advance by the lender to the company for the purpose of protecting or preserving collateral when the company failed to or is unable to meet its obligations. Protective Advances often occur close to or during a liquidation.
Public Auction
A Public Auction is a method of liquidating collateral to the public as opposed to selling collateral to a private party.
Purchase Money Security Interest (PMSI)
A Purchase Money Security Interest (or "PMSI") is a claim on property or asset that enables the lender that provided financing for the acquisition of goods or equipment to obtain a priority ranking ahead of other secured creditors.