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“B” – “D” Credit Customers: Refers to customers with credit ratings ranging from less-than perfect to bad. Also known as sub-prime credit.
Bad Debt: Debt that is delinquent and not able to be collected on. Typically written off as uncollectible.
Balance Sheet: Accounting statement that shows the overall financial and accounting picture of a company owned property. Also includes claims made against the property and dates.
Balloon: The balance of a loan or mortgage that is due at a predetermined date called a balloon payment. Monthly payments are made but in themselves are not enough to pay off of the debt at the due date without a balloon payment.
Balloon Payment: The lump sum payment due at a specified date to pay off the remaining principle balance in a balloon loan.
Bankruptcy: The inability to pay any more debts by company or individual. The entity will file bankruptcy with a federal district court.
Base Point (BP): Represents 1/100 of a percentage point. Often used in reference to the margin over an index rate.
Beneficiary: A person or party who is assigned as the recipient of benefits.
Bid Letter: Formal letter sent to potential borrowers that contains details of financing. The terms and potential borrower are still subject to credit approval.
Bill of Lading: Instructional document that contains instructions for a shipping or transport companies.
Blended Rate: Takes the average of two different loans that have two different terms.
Blended Term: The same as the blended rate; takes the average terms of two different loans that have two different terms.
Borrower: The legal entity, either an individual or a business that is entering into debt by acquiring financing from a money source.
Borrowing Entity Type: Legal entity type of the borrower who is purchasing the property.
Bridge Loan: Interim loan that is short-term and used until long-term/permanent financing can be found. Also used between the selling of a current property and the purchasing of a new property.
Broker: One who has access to and sells the financing products of many different lenders and acts as a liaison between lender and borrower for a fee.
Broker (Mortgage): Same as a broker but who specializes in securing mortgage loans for borrowers for a fee.
Broker (Real Estate): One who is a licensed real estate broker and can make real estate transactions and own and operate a real estate business with employees working under them.
Building Permit: Permit required for the modifying and construction of property. Must be obtained by applying to a local government authority and being approved.
Building SF (square footage): Square footage of building that is usable.
Business-based Income Streams: Cash streams and income from one business to another business.
Business Plan: Planning document that contains details of a business, it’s operations, objectives, and how the funding requested will be used.
Business Tax Return: Forms that a business submits to the IRS that declare the businesses taxable income annually.
Buy-Sell Agreement: A legal document that details the terms of selling a business between the buyer and seller.
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