Research originally conducted for a purpose other than one under consideration.
Usage: Secondary research is done to identify what is already known and findable.
Dwelling that is constructed in a factory to the Manufactured Home Construction and Safety Standards.
Usage: A manufactured house might be referred to as a mobile home even though it doesn’t move.
In marketing, the transition from a prospective customer to an actual customer.
Usage: In social marketing, one measure of conversion is when a browser signs up to be on a mailing list.
Loan To Value. The amount of the loan request in relationship to the value of the collateral.
Usage: The maximum LTV the bank was willing to consider was 50%; a $2 million loan needed to be backed by $4 million of collateral.
Sales or revenue. Refers to the first line of a profit and loss statement.
Usage: The sales manager was responsible for top line growth.
A success under pressure. From an American football reference to scoring a goal on the fourth down when the alternative is turning over the ball to the competitor.
Usage: It was fourth and goal when the sales team won the contract after a long series of open bids and proposal meetings.
Person who represents the lender and usually oversees the lending process.
Usage: The loan officer for our mortgage is located in California.
The unused portion of a purchase that will be used over time but is paid for in advance. Also referred to as a prepaid expense.
Usage: Although we pay for our property insurance once a year, each month we reduce the prepaid asset account for 1/12 of the insurance premium and recognize it as an expense.
The cost of a service or item purchased prior to the official start date of the business.
Usage: Advertising for your business opening is a start-up cost.
Business activity between two or more business entities that are controlled, owned by, or managed by a single parent corporation. Ownership of 5% or more generally triggers affiliate transaction considerations.
Usage: Sometimes affiliate transactions are governed by special laws or accounting rules.