Terms Beginning With 'l'

Loan Committee

A loan committee is the management committee of a loaning institution, or a bank that generally comprises higher-level officers having management authority.

The loan committee examines financial statements as well as credit information of the applicant to ensure compliance with the lending policy and statutory obligations of the bank. Moreover, the loan committee makes certain that the loan undergoes the standard lending policy of the institution.

High Leveraged Transaction is defined as a bank loan given to a company which is already in huge debt.

Margin is the borrowed money, used to buy an investment, from a brokerage firm and is the difference between the total value of securities held in the loan amount from the broker and an investor's account.

A margin account is also known as brokerage account or loan account, in which the customers can borrow money from brokers in cash to buy stocks or any other financial products. A margin account is only appropriate for a sophisticated investor, as the investor has the potential to lose more money than the deposited funds in the account.

Backlog is an accumulation of work that needs to be completed, and the term has a variety of uses in the accounting process. The uncleared company’s sales orders and pending loan applications are some of the examples of backlog. The backlog figures may impact the company’s future earnings.

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