EBIT - the abbreviation for a company’s earnings before interest and taxes, portfolio - all the securities and financial assets held by a financial institution or an individual, credit rating - an evaluation of a borrower’s ability to pay interest and pay back a loan in the future, collateral - something of value that secures a loan or other credit; if the borrower cannot repay, the lender can sell it to pay off the loan, maturity - the date on which a loan must be repaid, or the length of time until this date, margin - the difference between the interest rate a lender pays and the rate it charges its borrowers, overhead costs - the expenses of operating a business that are not directly related to individual products or services [e.g. electricity, telephones, administrative costs], credit limit - the maximum amount that a bank will lend to a customer, operating cash flow - the money generated from a business’s normal activities, cost of funds - the price [interest rate] that a financial institution must pay for the use of money,

Loans and Credit Unit 5 Vocab

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