Accounts receivable: A businesses transaction or series of business transactions that manage the billing of customers who owe money.
Bad debt: In business, this is a fiscal amount of receivables that is considered unrecoverable.
Bankrupt: A legally declared inability to pay creditors.
Collection agency: Business that charges a fee to collect debt from another company or organization's debtors.
Creditor: Party that claims another party owes it some form of capital or property.
Debtor: An individual or company that owes money to a creditor.
Dunning letter: A series of accounts receivable letters, which escalate in gravity, detailing the attempts made to collect on an unpaid debt. Often times the use of such letters serve as a legal requirement for a debt collector when they attempt debt collection.
FDCPA: Federal Debt Collection Protections Act. This is the primary US law governing the practice of debt collection.
First party: Refers to an entity that is a subsidiary of the original creditor in a two-party contract.
Third party: An entity that was not one of the two original parties obligated by a two-party contract. Often times, this is an independent debt collector.
Skiptracing: A debt collection method that a collection agency uses to locate an individual that has changed locations without satisfying their debt.
Hard money loan – A hard money loans is another option for real estate investors when a traditional mortgage lender may not work for their situation. A hard money lender uses a property as a “hard” asset and collateral. A hard money loan is an asset-based loan. Generally, hard money loans are contracted for a short-term – usually between 6 to 24 months. A real estate investor would not want their loan for a long period of time because the interest rates are typically higher than traditional loans. One of the biggest benefits of choosing a private money loan is the speed at which you can close.
Hard money lender – Hard money is lent out privately outside of traditional banking institutions, oftentimes by private individuals. With hard money loans, a borrower must go through a private lender and usually has a 12-month loan term. Most people pursue hard money loans to finance things quickly or to secure a loan that would not be approved by a conventional borrower or financial institution.
Bad credit loan – Bad credit loans are a relief option for investors whose low credit scores limit their borrowing options. Put another way: A bad credit loan, which is really just another name for a personal loan, can bail you out of a financial emergency, even if your credit score is a lot lower than you or most banks would like at that moment. If you suddenly need money to buy or repair a car; make payments on a medical bill or consolidate credit card debt, but don’t have a appropriate credit score to get a loan from one of the big banks, don’t give up. There is help available. Bad credit loans would work for this.
Private mortgage lender – Private or ‘Hard Money’ Lending is simply a short-term loan secured by real estate. The terms are usually about 12 to 24 months, but can be longer. The loan payments are usually interest only but can be amortized as well. As private lending is more expensive than traditional bank lending, a borrower typically wants to get in and out as fast as possible.
Copyright © 2023 Kwancapitalllc - All Rights Reserved.