Pathward Financial Investor Presentation Deck
Definitions, Continued
Commercial Lending Terms
Asset-Based Lending:
Asset-Based Lending (ABL) refers to business loans that are
secured based on assets as collateral, generally accounts
receivable, inventory, equipment or other balance sheet assets.
Accounts Receivable:
Accounts Receivable (A/R) financing refers to financing based on
the value of a company's accounts receivable (their invoices for
goods or services) to another company. It is a subset of asset-
based lending and is also known as factoring.
Equipment Financing:
Equipment Financing refers to a loan used to purchase business
equipment. The financing is provided through leases such as $1
Buyout, Fair Market Value (FMV), or through term loans. Leases
may appear in Loans & Leases or Rental Equipment.
Factoring:
Factoring refers to financing based on the purchase of a
company's accounts receivables, their invoices for goods or
services. It is a subset of asset-based lending and is also known as
accounts receivable financing.
Insurance Premium Finance:
Insurance Premium Finance refers to short-term collateralized
financing to facilitate the purchases of property, casualty, and
liability insurance premiums for the commercial market.
23 Pathward Financial, Inc. (Nasdaq: CASH) | 2023 Investor Presentation
Government Guaranteed Lending:
A government guaranteed loan is a loan guaranteed by a
government agency and financed through a lending financial
entity. Government guaranteed loans include SBA loans and
USDA loans.
SBA Loan:
An SBA loan refers to financing that is guaranteed by the Small
Business Administration (SBA) and provided by a lending financial
institution. SBA loans, such as an SBA 7(a) loan, may be easier for
a small business to obtain because of the reduced risk for the
lender. Lenders must meet sufficient requirements to be eligible
as a lending entity.
Term Loan:
A Term loan is a loan for a specific amount that has a specified
interest rate and regular payment schedule to be repaid over a set
period of time.
USDA Loan:
A USDA loan refers to financing guaranteed by the U.S.
Department of Agriculture (USDA) as part of the Rural
Development program and provided by a lending financial
institution. USDA business loans, such as the USDA Business &
Industry (B & I) loan, may be easier for a business to obtain
because of the reduced risk for the lender. Lenders must meet
sufficient requirements to be eligible as a lending entity.
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