The Finance Jargon | List of Finance Acronyms | What are Finance Acronyms

The finance jargon, what does it actually mean?

The finance jargon, what does it actually mean? 750 400 Lorna Slee

Understanding and translating key financial acronyms can be challenging. We have taken some of the most common ones and offered some simple translations:

LTV = Loan to Value
The percentage of any loan outstanding in comparison to the value of the asset.

GDV = Gross Development Value
The projected value of a property once construction have been completed and the building has been built.

HP = Hire Purchase
A funding arrangement which allows a business or entrepreneur to purchase an asset with an upfront cost and then ongoing monthly payment for a set period of time.

FCA = Financial Conduct Authority
A conduct regulator for financial service companies to ensure everybody is providing honest, fair and effective services to all consumers.

IDD = Initial Disclosure Document
A requirement from the FCA to ensure companies have an IDD, which outlines company details, key product and service offering, charges, regulatory authority and procedures to follow if a complaint needs to be made.

APR = Annual Percentage Rate
The amount of interest which will be charged for any type of borrowing. APR will represent the percentage charges in relation to the annual charge of the loan.

KYC = Know Your Customers
From the very outset of any new business relationship, it is vitally important to fully understand your customers and recognise their individual needs.

TOB = Terms of Business
Outlining a business approach and how they plan to deal with customers. It should define procedures, explain what you are planning to deliver whilst also limiting liabilities.

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