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.
Work in Process (WIP) 
Work in process inventory, often referred to as WIP, represents inventory that is in the production process.
Working Capital
Working capital is defined as Current Assets minus Current Liabilities. The key components of the working capital equation are accounts receivable (current asset), inventory (current asset), and accounts payable (current liability).
Working Capital Cycle
The amount of time it takes to turn the net current assets and current liabilities into cash.
Yield
Yield is the income return on an investment, usually expressed as an annual percentage rate. With regards to a loan, the yield would be all the interest, fees, and other charges during the life of the loan.
Yield to Maturity (YTM)
Yield to Maturity (YTM) is the total return anticipated on a bond if the bond is held until the end of its lifetime.
Zero Balance Account (ZBA)
A zero balance account, also referred to as a ZBA, is a checking account which always maintains a balance of zero funds at day end. The account is automatically funded from another account in an amount only large enough to cover checks presented.