Micro Enterprise Credit Vocabulary

Something of value

• liability

• asset

• debt

• equity

Cash, publicly traded stocks, government bonds or corporate bonds that can be quickly turned into cash

• dividend

• asset

• cash instrument

• maturity

Equipment, inventory or other goods that are pledged to the bank in the case the company can not make a loan payment

• mortgage

• securities

• share

• collateral

Money earned when something is sold. It is usually stated as a percentage

• commission

• collateral

• liquid asset

• liability

A person or a business with a strong credit score and the financial resources that make it like they will be able to pay any loan.

• collateral

• dividend

• credit-worthy

• net income

Money paid by a company to a person who owns stock in that company.

• liquid assets

• assets q

• dividend

• mortgage

An obligation you have to pay someone else money.

• asset

• commissions

• lien

• liability

The right to take possession of collateral until a debt is repaid.

• collateral

• lien

• mortgage

• notes payable

Cash or securities that can be immediately turned into cash, which can then repay any loan amount outstanding.

• mortgage

• commissions

• assets

• liquid assets

The date a loan (or debt or liability) is repaid in full.

• securities

• lien

• credit-worthy

• maturity