Supercharge Your Sales with Business & Commercial Financing Options For Your Customers & Clients

Financial terms glossary

It is possible that you will come across financial terms and acronyms on HelloRates that you are not familiar with when you are reading about various financial products. These definitions are being provided for your information and education so that you can gain a deeper comprehension of the services and products that are accessible through HelloRates.


401(k) Plan

A retirement savings plan sponsored by a company in which employees invest a portion of their earnings and defer taxes on that income. Employers may match employee contributions, and earnings are not taxed until withdrawal.

529 plan

A tax-advantaged savings plan intended to assist families in preparing for future college expenses. 529 plans are classified into two types: 529 prepaid tuition plans and 529 savings plans.

529 prepaid tuition plan

A form of 529 plan that allows families to prepay tuition at today’s rates for certain universities or colleges.

529 savings plan

A form of 529 plan that allows you to invest your college savings in several types of investments, including mutual funds. Similar to a 401(k) or IRA, the value of your account could increase or decrease based on market performance. This program, often known as an education savings plan, is normally administered by the state and may be offered by a private investment firm. This plan can also be utilized to help pay for kindergarten through 12th grade tuition at public, private, or religious schools.




The progressive and systematic decrease of debt through periodic principle and interest payments.

Amortization Schedule

A schedule displaying the principle and interest payments required at specified intervals. After each installment payment, the remaining unpaid principle balance must be reported.

Annual return

Profit or loss on an investment over the course of one year.

APR (Annual Percentage Rate)

The annual cost of borrowing money, represented as a percentage rate.


Contracts between you and an insurance company in which you pay a lump amount or a series of payments in exchange for regular payouts commencing either immediately or at a future date. Individual annuity contracts for seniors must include a statement addressing the surrender charge term in California. Ensure that you shop about and that you comprehend the annuity’s operation, fees and charges, and all other terms and circumstances.


A thing of monetary worth, such as stocks or real estate.


ATM is an abbreviation for “automated teller machine,” which is a machine that enables bank customers to do basic transactions, including deposits and withdrawals.

ATM balance inquiry fee

A fee that may be imposed if you check the amount of your prepaid card at an ATM or by calling customer care.

Automatic or direct debit

A method of bill payment that you arrange with the merchant or service provider. You provide the merchant or service provider (such as your cell phone provider or utility company) with your checking account information, and the money is automatically deducted from your account on the due date of the bill (for example, every month).


Balloon Payment

A large payment due at the conclusion of a loan.


A business and financial institution that accepts deposits, makes loans, and handles other financial activities.


The Inability of a person or entity to pay its outstanding debts. The procedure begins with a petition submitted by either the debtor or creditors.

Bankruptcy Protection

Method invoked by a bankrupt individual; used because a bankruptcy filing in a court of law halts all collection efforts and legal processes pertaining to debt and finances. Without bankruptcy protection, it is possible that your assets will be forfeited to your creditors through lawsuits and judgments.


A perk provided by an employer, the government, or an insurance company that is typically utilized for a specific purpose, such as food or medical expenses.

Bill-payment service

A service in which you authorize a business to use your cash, bank or credit union account, prepaid card, or other payment method to pay your utility, mortgage, or other bills in person, over the phone, via a website, or via a mobile application.

Bimonthly (semi-monthly)

Twice per month.


A form of debt comparable to an IOU. When you purchase a bond, you make a loan to the issuer, which could be a government, municipality, or business. The issuer pledges to pay you a specific rate of interest over the life of the bond and to refund the principle, also known as the bond’s face value or par value, when the bond “matures,” or comes due after a predetermined period.


Receiving something on loan with the expectation that it will be returned.


An individual or company that borrows anything from a bank or other financial institution, typically money.


A plan that details what money you expect to earn or receive (your income) and how you will save or spend it (your expenses) over a certain time period; sometimes known as a spending plan.


The act of producing, purchasing, or selling products or services for cash compensation.

Business income

  1. Earnings a business obtains from the sale of its goods and services.


To acquire something by paying for it.

Buying plan

People use a plan to figure out and think about things like price, features, and options before making a purchase.

Buying power

Inflation-adjusted purchasing power, often known as purchasing power, is the quantity of goods and services a particular unit of currency can purchase when inflation is taken into account.


Capital gain

The return made by selling an investment for more than what was paid for it.

Capital loss

A loss incurred by selling an investment for less than what was paid for it.

Card replacement fee

A charge that your prepaid card issuer may impose to replace a lost, stolen, or damaged card.


A fixed-maturity, fixed-rate savings instrument.

Certificate of deposit (CD)

A perk provided by an employer, the government, or an insurance company that is typically utilized for a specific purpose, such as food or medical expenses.

In Chapter 7 bankruptcy

a firm is forced to liquidate its assets in order to repay its creditors.

Chapter 11 bankruptcy

is a form of bankruptcy that permits a business to continue operations while its owners try to pay off its obligations.

Chapter 13 bankruptcy

A form of bankruptcy that permits individuals with steady income to restructure their debts. This lets a debtor repay creditors over a longer period of time, and typically permits the debtor to retain his or her property.

Checking account

A bank account (also termed a share draft account at credit unions) that enables deposits, bill payments, and withdrawals.


The insured’s request for compensation for a covered loss covered by the policy.

Closed-loop prepaid card

This sort of card is only accepted at specific places. A closed-loop card, for instance, may only be valid at a certain business or group of stores, or on your public transportation system.


A small metal disc used as currency.


An asset that a lender can seize if you fail to repay a loan or other commitment. For example, if you obtain a mortgage, your home is normally the bank’s collateral.


An amount of money earned by selling a product or service.

Comparison shopping

Comparison is the process of comparing prices, features, benefits, risks, and other aspects of two or more comparable items or services.

Compound interest

When you earn interest on both your savings and your interest earnings.


A person who purchases or receives products or services for his or her own personal consumption and not for resale.

Consumer Price Index (CPI)

a measure of the average change in prices paid by urban consumers for a market basket of consumer goods and services across time. There are indexes for the United States and numerous other countries.

Copayment (or copay)

A predetermined sum you pay in addition to the amount your insurer pays for a covered health care service.


A person who cosigns a loan, credit account, or promissory note in support of the primary signer’s credit and who assumes responsibility for the financial obligation.


The amount of money required to purchase or pay for something.


  1. To have a favorable return on one’s investment.


Borrowing money to buy something, or having the right to do so. Typically, it indicates that you are using a credit card, but it could also indicate that you obtained a loan.

Credit card

Unrestricted loan that allows you to borrow up to a particular amount and carry over a sum from month to month. There is no fixed repayment period as long as the monthly minimum payment is made. On any outstanding credit card amount, you pay interest.

Credit card statement

An overview of your credit card usage during the billing cycle.

Credit limit

A credit card company-set limit on how much you can charge on the card it provided you. Your credit card may be used for purchases up to your credit limit.

Credit score

A number generated by mathematical equations that use key components of your credit history to determine your credit score at a given moment.

Credit union

A cooperative financial institution owned by its individual members and chartered by the National Credit Union Administration (a federal independent agency) or a state government.

Credit utilization ratio

The ratio between the amount of available credit and the amount that has been spent.


(of a person or organization) deemed eligible to obtain credit, especially because of a history of prompt repayment.



Debit card

A plastic card used to make purchases (such as at supermarkets and gas stations) using funds from a checking account.


Money owed to another person or organization.

Debt consolidation

Consolidation is the process of combining many debts, such as credit card bills or loan payments, into a single loan with a single monthly payment. If you have many credit card accounts or loans, consolidation could simplify or reduce your payments. But a debt consolidation loan does not remove your debt. You may wind up paying more if you consolidate your debt with a different sort of loan.


The amount an insured must pay for a covered expense before the insurance company will contribute. Your deductible, for instance, is the amount you pay for approved health care services before your insurance plan begins to pay.


A measure of an item’s popularity or necessity and the number of consumers who desire to purchase it.


A borrower who is late or past due on a payment for a debt, such as a mortgage, credit card account, or other sorts of loans, is delinquent. Most creditors will allow a debt to remain late for a length of time before considering it to be in default.

Depository institution

A financial institution that is allowed to accept check and savings deposits, such as a bank or credit union.

Direct deposit

  1. Electronic transfer of funds to a bank account, credit union account, or prepaid debit card.


A portion of a company’s profit that is distributed to its shareholders.


  1. To provide aid (such as money, food, or clothing) to a person or group.



To obtain monetary compensation for goods or services.

Earned income

Earnings derived through paid employment or the operation of a business. This includes all revenue, wages, and tips earned from employment.

Emergency fund

A reserve of cash set aside primarily for unanticipated bills or financial emergencies. Common examples include automobile maintenance, home repairs, medical expenditures, and income loss.


A person who organizes, controls, and takes the risks of a business or company.

Estate tax

A tax on the value of the deceased’s property. It takes into account all of your assets and interests at the time of your death. Some states have their own estate taxes in addition to the federal estate tax.

Exchange rate

A number used to measure the relative value of currencies in different countries. For instance, you might use a currency exchange rate to determine how many pesos or euros one U.S. dollar would buy.

Expected family contribution

The index number used by schools to determine your eligibility for federal help. This number is derived from the FAFSA information you submit. On the Student Aid Report, your EFC index number is displayed. It is neither the amount your family will spend for college nor the amount of government financial help you will receive. It is a number used by your school to determine the amount of federal student aid for which you are qualified.


Federal income tax

An income tax is what the federal government receives from people and corporations based on their income. The federal income tax finances national programs like as defense, foreign affairs, law enforcement, and national debt interest.

Federal student loans

These loans are provided by the federal government and have specified terms and conditions. Federal loans also offer advantages that private student loans typically do not. These benefits might include lower interest rates, income-based repayment programs, and possible loan forgiveness for those who choose to work for a set period of time in the government, for certain non-profit organizations, or in low-income schools.

FICA – Federal Insurance Contributions Act

A payroll tax paid from your pay to fund Social Security and Medicare; your employer also contributes the same amount.

Financial aid

Funds provided in the form of grants, work-study, loans, and scholarships to assist with postsecondary tuition and fees, as well as housing and board, books, supplies, and transportation costs.

Financial capability

The capacity to efficiently manage financial resources, comprehend and apply financial knowledge, display good financial habits, and execute financial responsibilities as planned.

Financial emergencies

Expenses that arise unexpectedly are significant and require immediate response.

Financial well-being

The capacity to fulfill all current and future financial needs, to feel financially secure, to withstand a financial shock, and to have the financial flexibility to enjoy life.

Fixed expenses

Expenses, such as bills, that must be paid each month and cost the same amount on average. Some fixed expenses, such as a utility bill, may also be variable because their monthly amount fluctuates based on usage.

Foreign transaction fee

A fee charged by your card issuer when you use your prepaid card abroad or to pay in a foreign currency. This fee is typically calculated as a percentage of your purchase, withdrawal, or other transaction. Alternatively known as a currency conversion fee. Check your cardholder agreement before traveling, as not all cards can be used outside of the United States.

Form W-4: Employee's Withholding Allowance Certificate

Form completed by the employee and used by the employer to assess the amount of income tax withheld.


The criminal act of attempting to obtain your personal information and money through deception.


Gig economy

Generally, a slang phrase for situations in which workers are employed for specific projects, tasks, or short-time contracts, typically through an online marketplace.


The tangible objects that individuals wants, such as toys, clothing, and food.

Government benefits card

Government-issued prepaid cards used to pay some government benefits, such as unemployment insurance.

Grace period

The number of days in which a bill must be paid in full before financing charges are applied. Without this grace period, you may incur interest charges from the date you use your card or the date the purchase is posted to your account.


A sort of financial aid that is not required to be repaid, unless, for instance, you withdraw from school and are required to pay back a portion of the grant money; typically based on financial need.

Gross income

Total earnings before taxes and other deductions.


Identity theft

Utilizing your personal information without your permission, such as your name, Social Security number, or credit card number.

Homeowner's insurance

Covers the property and its contents in the event of loss or theft; helps pay for repairs or replacement.


Identity theft

Utilizing your personal information without your permission, such as your name, Social Security number, or credit card number.

Inactivity fee

A fee applied if a card is not used for a specified period of time. Variable lengths of inactivity generate inactivity fees. Not all prepaid cards have penalties for inactivity.


These include earnings or salaries, gratuities, commissions, contracted income, government transfer payments, dividends on investments, tax refunds, gifts, and inheritances.

Income tax

Federal, state, and local taxes on earned (salaries, wages, tips, commissions) and unearned (interest, dividends, capital gains) income (interest, dividends). Includes both individual and corporate income taxes. Not every state and municipality has an income tax.


The gradual increase in the prices of goods and services.


In exchange for payment, the process or arrangement whereby a firm or government body guarantees reimbursement for a specific loss, damage, disease, or death.


The individual, group, or entity whose life or property is insured under an insurance policy.


A person or organization that offers insurance policies in exchange for premiums; one who insures.


A fee charged by a lender for the use of borrowed funds. A bank or credit union may also pay you interest on specific account types.

Interest capitalization

Capitalization of interest occurs when unpaid interest is applied to the loan’s principal balance. Your lender may capitalize the unpaid interest on your federal student loan if it is not paid when it accrues (during times when you are liable for paying the interest). This increases the loan’s outstanding principle balance. On this increased principal sum, interest is levied, increasing the amount of interest charged and the overall cost of the loan.

Interest rate

A percentage of the amount borrowed that a lender or merchant charges for the usage of its money. Depending on the account type, a bank or credit union may also pay you interest on deposits.


To use money in order to create a profit; the strategic purchase or sale of assets in order to generate income or capital gains.


A financial expenditure that is expected to yield a financial return.

Irregular income

Variable quantities of money you receive from your job or investments; both the frequency and amount may fluctuate.



A contractual relationship in which you perform work for an employer.



The act of giving someone something with the expectation that they will return it to you.


An institution or anyone that lends money with the expectation of repayment, typically with interest


Future sacrifices of economic advantages that an entity is obligated to make to other entities as a result of past transactions or other historical events, the settlement of which may result in the future transfer or use of assets, provision of services, or other economic benefits.


A measurement of your capacity and convenience to obtain and spend your money.


Money that needs to be repaid by the borrower, generally with interest.


Maturity date

The date by which an investor’s investment must be repaid in accordance with the terms of the agreement. The maturity date provision of a certificate of deposit (CD) obligates the financial institution to return the principal plus interest to the investor on a stated date.


A health insurance program for adults 65 and older, certain younger people with impairments, and those with persistent kidney failure requiring dialysis or a transplant; funded by payroll deductions and administered by the Social Security Administration.

Minimum payment

The minimum monthly payment that must be made on a loan, credit line, or other debt.

Minimum wage

The lowest wage allowed to be paid to employees, as defined by contract or law.

Mobile banking

A service that allows you to manage your bank or credit union account using your smartphone or tablet without the assistance of a teller. This service allows you to deposit checks into your account, but not cash.


Can be used to purchase goods and services. Money appears differently in various parts of the world.

Money market deposit account

Account at a bank or credit union that is federally insured, gives a greater interest rate than a savings account, permits a limited amount of monthly transactions, and may require a minimum deposit or minimum account balance.

Money order

An alternative to using a check is to purchase a money order. You can purchase a money order to use for making a payment to a company or another party.


Mortgage loans can be used to finance the purchase of a home or can be used to borrow money against the equity in an existing home.

Mutual fund

A corporation that pools money from multiple investors and invests it in securities like stocks, bonds, and short-term debt. The mutual fund’s cumulative holdings are known as its portfolio. Investors purchase mutual fund shares. Each share indicates the investor’s proportional ownership of the fund and its revenue.


Net income

After taxes and other deductions have been deducted from your paycheck, the remaining amount is your net income.



Describes a sort of labor and its associated tasks, education and training, salaries, and work environments, among other details. A synonym for occupation is career.

Online banking

A service that enables you to handle your bank or credit union account via a secure website without the assistance of a teller. Using this service, you can move funds between accounts, but you cannot often deposit checks or cash.

Online or mobile bill payment

A form of bill payment that you establish with your bank or credit union. You supply your bank with the merchant or service provider’s details via online banking, and your bank then makes the payment according to the amount and time you choose. Online bill payment may or may not be available on the mobile application of a bank or credit union.

Open-loop prepaid card

This sort of card features a network’s logo. Visa, MasterCard, American Express, and Discover are all networks. These cards can be used anywhere that accepts the respective card type. Open-loop prepaid cards are the standard.

Opportunity cost

Cost of the next best use of your money or time when you choose one item or activity over another.

Out-of-pocket cost

The losses and expenditures that are not covered by insurance. This expense consists of deductibles, copayments, and sums paid for services or repairs that are not covered. It is the amount spent out of pocket before insurance coverage begins.


When you don’t have enough money in your account to cover a transaction, but the bank pays the transaction anyway, this is known as an overdraft. An overdraft fee may also be charged.


Paper check

A printed order to a bank or credit union to withdraw funds from a checking account and pay someone.

Pay period

The period of time an employee must work before receiving payment, such as a week or a month.


A check made out to you for your income or wages.

Payroll card

A sort of prepaid card issued by an employer for the purpose of receiving a paycheck.

Payroll tax

Taxes, like Social Security and Medicare taxes, are taken out of your paycheck.


In the context of insurance, it is a written agreement between the insured and insurer.


The individual or business that acquires a risk and needs protection, and in whose name an insurance policy is often issued. The insured is not necessarily the policyholder. For instance, corporations may purchase life insurance plans for key employees, or a spouse may purchase and keep a life insurance policy on his wife. In these instances, the purchaser is the policyholder.


The sum of money required to purchase insurance coverage.

Prepaid card

A card on which money is deposited in advance for use. While a prepaid card may appear similar to a debit or credit card, there are important distinctions. Your checking account is connected to your debit card. When using a credit card, money is borrowed. A prepaid card is not tied to a checking or credit union account. Most of the time, you cannot spend more than you have deposited onto your prepaid card.


Payment of a debt in full or in part before its due date.

Prepayment penalty

A fee that lenders may apply to borrowers who pay off their loans early.


In the context of loans, principal is the amount of money you initially borrowed from the creditor and committed to repay with interest. It is the amount of money you pay to an investment with the anticipation of earning a return.

Private student loans

These loans are issued by private institutions, such as banks and credit unions, that establish their own terms and conditions. Private loans are often more expensive than federal loans.


Money earned by a business after all costs and expenses have been deducted.

Property tax

Taxes on property, primarily real estate, but also can be on boats, automobiles (sometimes paid along with license fees), recreational vehicles, and commercial inventories.


To prevent someone or something from being harmed, injured, destroyed, or lost.

Public service announcement (PSA)

A statement or message presented for the benefit of the public, typically via radio or television.



A rise in pay or salary amounts.

Rate of return

Profit or loss stated as a percentage on an investment.


The rebate reduces the cost of consumer products. The majority of rebates require consumers to pay the full price for an item at the time of purchase and then mail in supporting documentation to the manufacturer or merchant in order to get a reimbursement by mail.

Regular income

The amount of money you receive on a weekly or monthly basis.


Gain or loss from an investment.


Exposure to danger, harm, or loss.



Payment made to an employee for work performed. A salary is a predetermined amount paid for a set period of time, such as weekly or monthly.

Sales tax

A percentage-based tax on the retail price of goods.


Putting something away for future use, such as money.


Money saved away in a secure location, such as a bank account, that can be used for emergencies or specific expenditures in the future.

Savings account

A bank account (also referred to as a share savings account at credit unions) used to save money and pay interest.

Savings goal

The amount you intend to set aside for a particular purpose.


A dishonest scheme used to deprive somebody of something valuable, such as money. Scams can occur by phone, email, snail mail, text message, and social media.

Secured credit card

A credit card that demands a security deposit in cash. The credit limit is greater the larger the security deposit. Secured credit cards are frequently used to develop credit.

Secured loans

Loans in which your property serve as collateral; if you are unable to repay the loan, the lender will seize your property to recover their money. Additionally, the lender may engage in debt collection, submit unfavorable information on your credit record, and file a lawsuit against you.


A financial instrument such as a stock or bond.


Actions that a person performs for another, such as cutting hair, administering a medical exam, or repairing a vehicle.


A unit of ownership, typically in a corporation’s stock or a mutual fund.

Short-term goals

Goals that are specific, measurable, attainable, relevant, and timebound.

SMART goals

An amount of money earned by selling a product or service.

Social Security

provides benefits to retired workers and individuals with disabilities, as well as their unmarried children, surviving spouses, and (in some situations) former spouses.

Social Security number

The nine-digit number that appears on a Social Security card, an essential piece of identification provided by the federal government that is required to obtain employment and collect government benefits.


The act of purchasing things or services with money.

State income tax

The majority of states and certain local governments compel people to pay a personal income tax. In general, states utilize either the progressive income tax or the flat rate income tax to calculate income tax. Both approaches demand that you calculate your taxable income first.


A sort of investment that entitles the investor to a portion of a company’s ownership.

Student loan servicer

This organization collects payments on student loans, monitors loans while borrowers are in school, answers questions from borrowers, and does other loan-related responsibilities.


A contract with a corporation to receive a publication or service on a recurring basis, which is typically paid in advance.


How much of a product is currently available for purchase.



A tax imposed on things imported from abroad. This tax may increase the price of these products, which may ultimately be passed on to consumers.

Tax deduction

Amount that reduces taxable income and is often a personal or company expense.

Tax refund

The amount payable to taxpayers when their overall tax payments exceed their total tax liability. Government-issued refunds are obtained.

Tax-related identity theft

When someone uses your Social Security number to file a tax return claiming a fake refund; also known as identity theft connected to tax filing.


Required payments to governments, who utilize the revenues to deliver public goods and services for the greater good of the society.


A predetermined or constrained duration for which something exists or is meant to exist. For example, a five-year loan, a three-year certificate of deposit, a one-year insurance policy, a 30-year mortgage.

Transaction fee

A fee charged each time a card is used for a certain type of transaction. Be careful to check any costs and read your card’s cardholder agreement.


Unauthorized use

Transactions made with your ATM card, debit card, or credit card that you did not make or approve (such as withdrawals, transfers, purchases, or charges), and for which you did not receive any benefit.


Unbanked families lack a checking or savings account at a Federal Deposit Insurance Corporation (FDIC)- or National Credit Union Administration-insured institution (NCUA).


A person with a bank or credit union account who additionally uses alternative financial services such as payday loans, check cashing, or pawn shop loans.

Unearned income

Individuals obtain income even if they do not labor for compensation. Include allowances for children, stock dividends paid by firms, and monetary presents.

Unsecured loan

A loan for which no property is used as collateral. Lenders may charge a higher interest rate for these loans since they are viewed as more risky than secured loans. If the loan is not repaid as agreed, the lender may potentially initiate debt collection, submit negative information to credit bureaus, and bring a lawsuit against you.

U.S. savings bond

A fixed-amount, interest-bearing savings instrument issued by the United States government.



The monetary worth of an item.

Variable expenses

Expenses whose amount fluctuates from month to month.

Virtual currency

A form of electronic currency. It is a digital representation of value that is not issued by a government, such as a central bank or public body, but is recognised as a form of payment and may be electronically transmitted, stored, and exchanged.


To perform something beneficial for others without receiving compensation.




Compensation earned for services rendered by employees. Typically, earnings are determined by multiplying an hourly rate by the number of hours worked.


Non-essential items that would be good to have but are not required for survival, making a living, or preserving what one has.


A manufacturer’s warranty is a pledge by the manufacturer to cover certain repairs or services. Typically, a warranty lasts for several years.

Wire transfer fraud

Convincing someone to wire or transfer money in order to steal from them. 

Withholding ("pay-as-you-earn" taxes)

Employers’ deductions from employees’ paychecks. This sum is deposited for the government and deducted from the employees’ tax liability when they file their tax returns. In some states and municipalities, employers withhold federal income taxes, Social Security and Medicare taxes, and state and local income taxes.

Work-study program

A federal program that offers undergraduate and graduate students with financial need with part-time work, allowing them to earn money to help pay for their education.

Wraparound loan

A loan in which the borrower refinances a previous loan at an interest rate between the current market rate and the original loan’s interest rate, which is ideally lower. This permits the borrower to refinance the first loan without having to accept a significantly higher interest rate.



The revenue earned by an investor from an investment. The yield is determined as the annual coupons or dividends received by the investor as a percentage of the investment cost.

Are you sure you want to say goodbye?

We will be sad to see you go, but if you no longer want to receive emails from

HelloRates Commercial, please click on the link below.