This glossary provides key terms and definitions commonly used in the ClearPolicy platform and the asset finance industry. Use this guide to better understand the terminology and assist your clients effectively.
ABN (Australian Business Number)
An 11-digit identifier unique to businesses operating in Australia, essential for various business transactions.
Asset Class
Refers to the category of the financed asset, such as Vehicle, Wheeled Plant/Equipment (PE), Secondary, or Tertiary assets.
Balloon Payment
A lump sum payment due at the end of the loan term, designed to lower monthly repayments during the loan period.
BPS (Basis Points)
A unit for measuring interest rates. 1 bps equals 0.01%, making 100 bps equivalent to 1%.
Capitalised Fee
A fee incorporated into the loan principal, which increases the Net Amount Financed (NAF) and the total interest paid over the loan term.
Chattel Mortgage
A loan secured by an asset, allowing the borrower to own the asset from day one.
Doc Type
Specifies the type of documentation required for your client's application: Full Doc, Low Doc, or Lite Doc.
Edge Case / Review
A scenario that meets policy requirements but requires further verification due to specific conditions or warnings.
Credit Score
A numerical evaluation of creditworthiness, typically ranging from 0 to 1200.
Establishment Fee
A fee charged by the lender to set up your client's loan.
Gate
A policy rule used to determine eligibility (pass/fail) for a specific product.
GST (Goods and Services Tax)
A 10% consumption tax applied to most goods and services in Australia.
LVR (Loan to Value Ratio)
The loan amount as a percentage of the asset's value.
Load/Loading
An increase to the base interest rate due to assessed risk factors.
NAF (Net Amount Financed)
The total financed amount, comprising the Loan Amount plus Capitalised Fees.
PAYG
"Pay As You Go" – pertains to employees who receive regular wages.
Policy Bundle
A collection of rules for a specific lender product, including gates, pricing, and fees.
PPSR
Personal Property Securities Register - Australia's register for recording security interests over personal property.
Sale Type
Describes how the asset is acquired: Dealer sale, Private sale, or Refinance.
Self-Employed
A borrower who operates their own business instead of being an employee.
Term
The duration of the loan, generally expressed in months.
Tertiary Asset
Lower-tier assets that are subject to higher risk loadings and stricter eligibility criteria.
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