Accident, sickness and unemployment cover
Cover that gives money for a decided amount of time if a person is rendered unemployed; or disabled due to accident or sickness

Accounts Receivable Financing
Selling of outstanding receivables for cash to any other company at a discount, which then assumes the risk on the receivables.

Annual Fee
Fee charged by the lender every year for the management of the loan

AVC
Additional Voluntary Contributions- Extra pension contributions which a member of an Occupational Pension Scheme makes to get additional retirement benefits.

Accidental Death Benefit
An additional provision which can be taken with life insurance policies and provides payment in the event of accidental death.

ADD
Accidental Death and Dismemberment- Loss of life or limbs due to an accident.

Acceleration
A provision that requires payment of the total outstanding balance in case of missed payments, bankruptcy, or breaking of loan covenants.

Accrual rate
Percentage of salary which accumulates every year of service within an Occupational Pension Scheme.

Agent
An individual or firm authorised to act on behalf of another entity or person, known as the principal.

Additional Borrowing
Extra funds one can borrow over and above what has already been borrowed.

Annual Percentage Rate (APR)
Rate which considers all the added cost to a given loan. It is a function of the interest rate, loan amount, total added cost, and the terms.

Appreciation
The increase in value of an asset.

Arbitration
Process by which conflict between two or more parties is resolved by a neutral third party.

Asset
An item of economic value owned by an individual or entity. Examples are cash, stocks, car, real estate etc .

Bankruptcy
A condition in which a debtor cannot meet his debt obligations and his assets are liquidated.

Base rate
The interest rate decided by the Bank of England that British banks charge their customers.

Basic State Pension
Regular income from the state paid to retired people in UK .

Benefits
A payment made under an insurance policy or public assistant program or employment agreement to a claimant or beneficiary.

Bonus
Reward given by the employer to the employees, based on personal and/or company performance. It can be either monetary or non-monetary.

Bridging Loan
Short term loans often used by buyers of a property who need funds until they sell their existing property.

Broker
An individual or firm acting as an intermediary between two parties and enables them to enter into a contract.

Building Society
Financial institution which enables members to buy their own homes by paying interest on deposits and lending money on the security of property.

Business Plan
Document detailing a company's business and its prospects.

County Court Judegment
CCJ- Awarded by a court in UK if one is summoned to court over a debt and one either doesn't turn up or lose the case.

Capital Expenditures
Business spending on additional plant equipment and inventory.

Cover
Protection provided by an insurance policy.

Cover Note
Temporary certificate which confirms that an insurance policy is in force.

Credit
A contractual agreement which allows a borrower to receive something of value and pay for it later

Credit search
A check made by a lender with a credit reference agency in order to check your credit rating.

Credit rating
A rating or score that determines one's ability to meet debt obligations and one's credit worthiness.

Critical illness cover
Cover which pays if you are diagnosed with one of the critical illnesses covered by the plan.


This Financial Glossary is provided for assistance only. If you are in any doubt about a financial term, you should seek independent financial advice.