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.
Right of First Refusal 
Right of First Refusal is a legal right that gives its holder the option to enter into a business transaction with the owner of something, according to specified terms, before the owner is entitled to enter into that transaction with a third party.
SG&A
Short for Selling, General, and Administrative; it includes primary operating expenses including salaries, rents, marketing expenses, etc. It is found on the income statement, generally a line item in the operating expense section.
SKU
Abbreviation for "Stock-Keeping Unit." A SKU is usually a distinct item for sale and helps encompasses attributes that distinguish it from other products sold.
Sale Leaseback
A transaction where a company will sell an asset, usually a large fixed asset (plane, train, Real Estate) to a leasing/financing company to generate liquidity.
Sale Terms
Typically noted in terms of days, it is the amount of time after an invoice is issued that the customer has to pay for the good/service. Sales terms also include any discounts or rebates that may occur due to early payment.
Salvage Value
The estimated resale value of an asset at the end of its useful life, when it has been fully depreciated. It is used to calculate the depreciable cost of an asset by subtracting it from the cost of an asset.
Scope of Work
Scope of work refers to the depth and breadth of research work performed while completing a specific project, typically audits or appraisals.
Scrap Value
Similar to salvage value, it is the estimated value of an asset's physical components after it is beyond its useful life.