What is BNPL?
Buy now, pay later (BNPL) is a type of short-term financing that allows consumers to make purchases and pay for them over […]
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What is a Loan Management System?
A loan management system (LMS) is a software application designed to manage lending operations for financial institutions like banks, credit unions, microfinance […]
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What is a Loan Tape?
A loan tape is a detailed file that contains information on a portfolio of loans held by a bank or other financial […]
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What is Interest Accrual?
Interest accrual refers to the accumulation of interest on a loan over a period of time. As interest accrues on a loan, […]
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What is Prepayment Rate?
A prepayment rate, also known as the constant prepayment rate (CPR), is a metric used in lending to measure the percentage or […]
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What is a Verification Agent?
A verification agent, also sometimes referred to as a verification trustee or review agent, plays an important role in debt facilities and […]
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What is Portfolio Duration?
Portfolio duration is a measure of the average maturity of all the debt instruments in a portfolio, weighted by the relative value […]
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What is Excess Spread?
Excess spread is a key concept in consumer finance, specifically when looking at warehouse facilities and asset-backed securitizations. At a high level, […]
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What is Weighted Average Life of a Loan Portfolio?
The weighted average life (WAL) of a loan portfolio is a measure of the average length of time that each dollar of […]
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What is a Recurring Revenue Loan?
A recurring revenue loan is a type of financing option for businesses that rely on regular, ongoing revenue from subscription, membership, or […]
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