In This Section
Security Deposit 
A fee received (when required) by a creditor to secure a customer's agreement to complete a transaction (typically a loan).
Securitization
The pooling of financial instruments and the subsequent selling of the cash flows to investors in the form of a security.
Secured Loans
A loan which is supported (secured) by collateral through a lien on certain or all assets of a borrower. All ABL facilities are secured loans.
Second Lien Loan
A loan that is secured by a lien on an asset, however, the lien is second in priority to the proceeds of the asset. In a liquidation scenario, the first lien lender must be paid in full before the second lien lender is paid.
Seasonal Advance Rates
A revolving line of credit fluctuates with a customer’s working capital needs on a seasonal or cyclical basis.
Scrap Value
Similar to salvage value, it is the estimated value of an asset's physical components after it is beyond its useful life.
Scope of Work
Scope of work refers to the depth and breadth of research work performed while completing a specific project, typically audits or appraisals.
Salvage Value
The estimated resale value of an asset at the end of its useful life, when it has been fully depreciated. It is used to calculate the depreciable cost of an asset by subtracting it from the cost of an asset.
Sale Terms
Typically noted in terms of days, it is the amount of time after an invoice is issued that the customer has to pay for the good/service. Sales terms also include any discounts or rebates that may occur due to early payment.
Sale Leaseback
A transaction where a company will sell an asset, usually a large fixed asset (plane, train, Real Estate) to a leasing/financing company to generate liquidity.
Right of First Refusal
Right of First Refusal is a legal right that gives its holder the option to enter into a business transaction with the owner of something, according to specified terms, before the owner is entitled to enter into that transaction with a third party.
Revolver
A Revolving Line of Credit (RLOC, Revolver) is a type of loan usually provided to a corporate borrower or individual by a bank or other financial institution. It is a line of credit used for operating purposes and can fluctuate each month depending on the customer's current cash flow need.
Return to Vendor (RTV)
The return of goods to the original vendor, bypassing the distributor.
Retention of Title
Provision in a contract for the sale of goods that the title to the goods remains with the seller until certain obligations are fulfilled by the buyer.
Retention (Retainage)
A portion of the contract price that is withheld/not paid until the project is completed and inspected.
Retained Earnings
On the balance sheet, the amount of earnings left over to be reinvested in the core business of the company or to pay down debt.
Retail Lending
Financing offered to individuals such as mortgages, auto loans,and other consumer uses, than to institutions.
Retail Factoring
A financing solution, in which a company sells it's accounts receivable at a discount in order to raise capital.
Residual Value
An asset's residual value is the estimated amount that it will be worth at the end of its useful life, also known as the salvage value.
Reserves (general)
An allowance set aside by a company to compensate for a potential issue. i.e bad debt reserve.
