Commercial finance glossary.

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Ability to pay
Refers to the borrower's ability to make interest and principal payments on debts.

Advance of Discount Loan
An unsecured loan (commonly up to £20,000) offered by your brewery to act as security against your public house in exchange for you signing an agreement to purchase a number of products from them.

Adverse Credit
The term used if the borrower has a poor credit history. This could include previous mortgage or loan arrears, bankruptcy or CCJs.

Repayment of the capital element of a debt over time, often by an equal amount each year.

APR (Annual Percentage Rate)
The interest rate reflecting the cost of a mortgage as a yearly rate.

Arrangement Fee
The fee you pay your lender in return for them providing you with a mortgage.