Financing Glossary

Use this glossary as a plain-language reference for terms that appear throughout Meridian’s financing pages and resources.

Business financing terms

• Business Line of Credit (LOC): A revolving credit line. Available credit can replenish as payments are made.
• Revolving: A structure in which available credit can be used again as payments restore availability, subject to the applicable agreement.
• Interest-only payments: Payments described as interest-only under the published Business Line of Credit program.
• Underwriting: The review of business, property, equipment, documentation, and other information relevant to a financing request.
• Refinance: A financing discussion involving an existing obligation rather than a new purchase.

Equipment financing terms

• Equipment Financing: Financing used to purchase or support an eligible equipment transaction for a business.
• Equipment Refinancing: A review of an existing equipment obligation within Meridian’s equipment-financing capabilities.
• Lease option: An equipment transaction structure governed by the terms of the specific lease agreement.

Real estate financing terms

• LTV (loan-to-value): A comparison between the financing amount and the property value used for the transaction.
• LTC (loan-to-cost): A comparison between financing and the project cost used for the transaction.
• ARV (after-repair value): The projected property value after the planned renovation or construction work.
• Bridge financing: Short-term financing used for a property transaction while moving toward resale, refinance, or longer-term financing.
• Ground-up construction: Financing for building a property from the ground up.
• Rent roll: A property-level schedule of rental units or tenants and related rent information.
• P&L (profit and loss statement): A financial statement showing revenue and expenses over a period.
• PFS (personal financial statement): A statement of an individual’s assets, liabilities, and financial position.
• Pro forma: A forward-looking financial projection used to describe expected transaction or project economics.

Use every term in context

Definitions are educational. The treatment of a term in a specific financing agreement depends on the actual transaction documents and provider terms.

Availability, eligibility, structures, costs, and timing depend on the transaction, provider review, documentation, program availability, and applicable terms.