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Common Terms & Definitions

> Bank of England Base Rate
Every month the Bank of England sets the Base Rate which is the figured used to compute for the interest rates of banks and building societies.

> Capital
Amount of money available for a business to finance its regular operations on a daily basis.

> Fixed Rate
Rate of interest applied to a loan which does not change for a certain period of time.

> Grant
A form of business funding that is awarded by the Government or an institution that doesn’t require repayment or any rate of interest.

> Lender
A loan provider.

> Loan Term
An agreed period of time for a loan to be repaid.

> Principal
The full amount of the loan on which interest is payable.

> Secured Loan
A loan that is secured by conditions that associate it with some form of property or asset that may be repossessed by the lender should the individual or company taking out the loan fail to meet repayments.

> Variable Rate
A rate of interest that changes in accord with fluctuating market rates.