Accrued Interest – Interest that has accumulated since the last loan payment.

ACH (Automated Clearing House) – An automatic draw or draft made from a checking (or depository) account on a specific date each month.

Additional Insured – An insurance term in which an additional party is named on the policy in addition to the actual policy holder.

Advance Payments (Up-Front Payments) – Payments submitted before the agreement is started.

Amortization – A schedule that shows a breakdown of the interest and principal portion of each payment and the principal balance remaining.

Ancillary Equipment – Equipment used in a laundry that is in addition to washers and dryers e.g. change machine, soap vendor, laundry carts, folding tables, etc.

Application – A form that is completed by a person or entity that is applying for financing.

Applicant – The person who is applying for financing.

Asset – Property that has value irregardless of whether or you can see the property (tangible – e.g. an automobile) or not (intangible – e.g. contract rights).

Assumption (Assignment) – The process of transferring an agreement from one party to another.

Attendant – A person who works in the laundry assisting customers.

Audited Financial Statement – Financial Statements that have been reviewed by an accountant and certified as accurate.

Balance Sheet – A financial statement showing assets and liabilities for an entity.

Bankruptcy – A legal process undertaken by an individual or organization that is unable to meet its financial obligations. Debts may be reorganized or eliminated under the supervision of the bankruptcy court.

Base – A steel structure that is used to secure and/or elevate a hard-mount washer.

Broker – An intermediary who facilitates the sale of property, businesses, etc.

Borrower (Debtor) – Person or entity who obtains money from a different person or entity.

Buildout (Leasehold Improvements) – The specific construction and/or associated cost required to alter the building for the requirements of a laundry.

Bulkhead (Utility Rack) – A structure that provides electricity, water, and drain piping to a row of washing machines.

Buy-Sell Agreement – An agreement that details the terms and conditions of the sale and purchase of a business.

Card Operated System – A computerized system of starting washers, dryers, and other equipment using credit card type cards.

Cash Value Life Insurance – The value of a life insurance policy if the policy is redeemed for cash.

Certificate of Occupancy (CO) – A certificate issued by a local building department to a builder or renovator indicated that the premises is in a safe condition to be occupied.

Change Machine (Coin or Bill Changer) – A machine that accepts paper money and “changes” it into coins or bills of the same value.

Coin Box (Money Box) – The box installed (or attached to) a washer or dryer that holds the coins that have been deposited into the washer or dryer.

Collateral – Assets that are used to secure the repayment of a financial obligation.

Commitment Letter – A letter that briefly explains the terms and conditions of a pending financial transaction.

Competition – Other business in a given trade area that provide similar goods or services.

Corporate Resolution – A document signed by the officers of a corporation that certifies that the individual signing an agreement on behalf of the corporation has the authority to enter the corporation into an agreement.

Covenants – A legal promise to do something or refrain from doing something.

Credit Bureau – The agency that collects and maintains credit information on individuals.

Credit Bureau Report – The report generated by the credit bureau that shows a person or entity’s credit history.

Credit History – A summary of a person or entity’s repayment history to their creditors.

Credit Worthiness – The ability of a person or entity to obtain credit.

Default – The act of failing to pay money owed when due.

Demographic Study – A study used to evaluate customer trends and characteristics within a given area.

Deposit – Money placed with another for safe keeping, often to ensure the performance of an agreement.

Distributor – An entity that provides equipment for sale to the public.

Documentation – The process of preparing written evidence of a financial contract.

Documentation Fee – A fee charged to prepare loan or lease paperwork.

Expenses – Items that cost money to acquire or use.

Front Load Washer – A washing machine that is loaded and unloaded through a door on the front of the washer.

Fixed Rate – An interest rate that remains constant over the term of the loan.

Floating Rate (Variable Rate) – An interest rate that may change over the term of the loan.

Free Standing Building – A building that typically has only one tenant.

Gross Income – Total income from the operation of a business before deducting expenses.

Hard Mount Washer (Solid or Rigid Mount Washer) – A washing machine that requires secure mounting to the floor.

Income Statement – A financial statement that shows business income and expenses for a specified period of time.

Landlord Waiver – A document signed by the Landlord of a premises in which the Landlord waives any legal claim in personal property brought onto the premises.

Landlord Subordination – A document signed by the Landlord of a premises in which the Landlord agrees to subordinate any legal interest in their tenant’s personal property to that of tenant’s creditor.

Late Fee – A fee charged for a payment that is not paid by the due date.

Lease Agreement – An agreement for the use and possession of equipment for a specified period of time.

Leasehold Improvements (Buildout) - The specific construction and/or associated cost required to alter the inside of building for the requirements of a laundry.

Lendor – An individual or entity that loans money to others.

Lessee – The entity that contracts with a Lessor for the use of equipment for a specified period of time.

Lessor – The entity that provides equipment for use by a Lessee.

Loan – Temporary borrowing of a sum of money.

Loan Amount – The sum of money that is borrowed.

Loss Payee - An individual or entity to whom an insurance loss payment or insurance settlement may be directly paid.

Mortgage Holder – The person or entity provided financing that is evidenced by a mortgage contract.

Net Cash Flow – The money from business operations after deducting expenses without taking into account any depreciation.

Net Worth – The monetary value of a person or entity calculated by subtracting liabilities from assets.

NSF Check (Non-Sufficient Funds Check or Check Returned Unpaid) – A check that is returned as unpaid due to insufficient funds in the account the check is drawn from.

NSF Fee – A fee charged for presenting a check that did not clear the bank.

Payment Schedule – A document that shows payment due dates for a specific obligation.

Payoff – Payment in full of a financial obligation.

Personal Property – Property owned by an individual or entity excluding land.

Personal Property Tax – Tax assed by the taxing authority based on the value of personal property located within the taxing authorities jurisdiction.

Principal Balance – The amount of debt remaining on a financial obligation excluding interest.

Property Insurance – An insurance policy that covers real and/or personal property.

Proposal – An initial estimate of cost for the sale of goods and/or services.

Real Property – Land and/or other property that can not be moved.

Refinancing – The process of obtaining financing to payoff an existing debt.

Rent – Compensation for the possession and use of real or personal property.

Repayment – The process of returning money that was borrowed.

Residual Value – The anticipated value of property at the end of a specified lease term.

Revenue – Money generated from business operations.

Security Agreement – A legal document in which a borrower authorizes a creditor a legal claim to certain property to secure repayment of a financial obligation.

Shareholder – A person (or entity) that owns stock or shares of a corporation.

Single Pocket Dryer – A dryer that contains only one drying chamber or pocket.

Soft Mount Washer - A washing machine that does not require secure mounting to the floor.

Stack Dryer – A dryer that has two drying chambers (or pockets) in one unit.

Start Date (Commencement Date) – The date that an agreement begins.

Strip Mall – A commercial multi-tenant building that is typically a long building facing a road that is divided into separate stores and/or businesses with parking spaces in front.

Tenant – A person or entity that is renting real personal property from another person or entity.

Term – The length of a contract usually expressed in months.

Term Loan – A loan that is to be repaid during a specific period of time.

Top Load Washer – A washing machine that is loaded and unloaded through a door on the top of the washer.

Turns-Per-Day (“TPD” or Cycles Per Day) – The number of times in one day that a specific washer is used.

Underwriting – The process of evaluating the credit worthiness of an applicant.

Underwriting Questionnaire – A questionnaire that is used to collect basic information about a specific laundry location.

Utilities – Gas, water, and electricity used to operate a laundry.

Variable Rate (Floating Rate) - An interest rate that may change over the term of the loan.

Wash, Dry & Fold (Drop-Off Laundry) – A service offered by laundries in which a customer drops off their laundry to be cleaned by laundry attendant.

Working Capital – Money used to operate a business.