Lending Terms Business Owners Need to Know

any business owners haven’t had the opportunity to attend fancy college programs in business and finance. Nonetheless, there are many terms related to loans and credit that you need to understand, especially if you are about to apply for your first business loan. Here is IOU Financial’s rundown of important lending terms.
ACH Transfer:
An electronic, bank-to-bank transfer from one account to another, processed by the Automated Clearing House network. Lenders typically deposit loan proceeds and collect payments via an ACH transfer.
Annual Percentage Rate (APR):
An annual interest rate that reflects the cost of a loan, including fees. Because APRs are standardized, they allow you directly compare loans from different sources.
Application Pre-approval Rate:
The percentage of loan applications that a lender pre-approves. A good lender should have an application pre-approval rate of at least 85 percent and should provide the pre-approval within minutes.
Better Business Bureau Rating:
A rating from the BBB that assesses your business’ overall practices. The top rating is A .
Business Credit Report:
If you run a corporation, limited partnership or limited liability company, a business credit report functions for your business the same way as consumer credit report does for individuals. Providers include Dun