A record of all short-term (less than 12 months) invoices, bills and other liabilities yet to be paid. Examples of accounts payable include invoices for goods or services, bills for utilities and tax payments due.

A record of all short-term (less than 12 months) expected payments, from customers that have already received the goods/services but are yet to pay. These types of customers are called debtors and are generally invoiced by a business.

See Factoring

An accounting system that records transactions at the time they occur, whether the payment is made now or in the future.

this is the expression used to describe a poor/ bad credit history. For example it may be used to describe someone with a history of late payments, CCJs or bankruptcy

An Agreement in Principle is confirmation that a lender is prepared to advance a loan to a potential borrower subject to being satisfied with the security offered – i.e. a positive Decision in Principle.

This typically shoes the total household income and expenditure and what the total asset values are liabilities that are held.

The process of expensing for intangible assets such as goodwill and intellectual property over a period of time. See also Depreciation.

The Annual Percentage Rate provides an indication of the overall cost of a loan including all set up costs (spread over the life of the loan) and interest charged on the loan. You can compare APR rates between different loans to provide a rough indication of which is more expensive, regardless of loan term. The lender is obliged to tell you the APR before you sign a loan agreement.

This is the amount charged by a lender to set up the mortgage for you. It is usually due when the loan application is completed and may be added to the loan.

Someone is in arrears if they have missed payments that they should have made towards their mortgage or other debt.

Are things you own. These can be cash or something that can be converted into cash such as property, vehicles, equipment and inventory.

An Assured Shorthold Tenancy entitles the landlord to a possession order immediately after the initial agreed period, which is usually for six months. The landlord is therefore able to evict the tenant after the initial fixed term without a legal reason.

A physical check performed by an auditor or tax official on a business’ financial records to check that everything is accounted for correctly.

A firm that has the necessary permissions from the FCA (or its successor bodies) to carry out regulated activities – e.g. arranging residential mortgages or insurance.