1. A lender actually purchases a borrower's accounts receivable in exchange for cash. 2. A loan made by a firm to finance its worker's (employees) credit needs the five C's of credit. 3. A loan package extended to a large firm by a group of lenders. Covenants 4. Allows a customer to borrow up to a pre- specified limit, repay all or a portion of the borrowing, and reborrow as necessary until the credit line matures. Lenders will charge a loan commitment fee. Collateral 5. Loan designed to fund longer-term business investments covering a period longer than one year. term loan real estate loans 6. revolving credit linc A part of the loan agreement or bond indenture (bond contract) that tells the borrowing firm what it must do, such as maintaining a debt ratio below a set threshold, limiting the amount of debt the firm can issues, and restrictions on asset sales, among others. Refers to an illegal loan made by a criminal organization. The rates are very high but the borrowers often cannot get credit elsewhere. 7. Working capital loan 8. A loan secured by real property Factoring syndicated loan A traditional axiom of lending. When analyzing 9. a potential borrower, this is a list of critical areas to consider and analyze. Captures what lenders look for when analyzing a potential borrower. 10. Short-term credit, lasting from a few days to up to a year Assets the borrower owns that are pledged to 11. back up a loan; often a secondary source of repayment to the lender