Commercial Lending Glossary
A glossary of definitions for common terms used in commercial real estate hard money lending & CRE investing.
A loan secured by some sort of collateral. Collateral may include real estate or other assets, and helps to mitigate the risk for the lender. Can be directly contrasted with unsecured loans.
A broad term for a revolving line of credit (LOC) granted to an individual or business, or a fixed loan with a short term. When a bank extends short-term credit for a business purchase, this will generate short-term debt for the borrower until repayment is made.
Interest process by which the additional interest is not added to the principal sum. A relatively common process in economics and finance, simple interest can be contrasted with compound interest.