At a glance: A debt and loan sale glossary clarifies terms used in portfolio definition, diligence, pricing, servicing, documentation, transfer, and closing. Use the definitions to prepare a better conversation, then route transaction intent to the appropriate Fitzgerald hub.
Key Takeaways
- Define the asset, objective, scope, and decision timeline before outreach.
- Keep data, documentation, ownership, servicing, and material exceptions connected.
- Compare complete economics and execution terms rather than a headline number alone.
- Document responsibilities, transfer controls, and the next review step.
A–D: Assets, balances, and evidence
| Term | Working definition |
|---|---|
| Account identifier | Stable code connecting a tape record with its documents and servicing history |
| Accrued interest | Interest accumulated under the relevant calculation; inclusion in a sale balance requires a defined basis |
| Assignment | Transfer of specified rights, subject to governing documents and applicable requirements |
| Balloon payment | Larger scheduled payment due at a specified time, often maturity |
| Bankruptcy claim | Asserted right to payment in a bankruptcy case, with allowance, priority, and distribution subject to the case |
| Basis / purchase basis | The amount invested in an asset, with the included costs stated |
| BHPH | Buy-here-pay-here; a dealer-financing context for vehicle receivables |
| BNPL | Buy now, pay later; a label covering products whose structures and terms can differ |
| Chain of title | Evidence connecting ownership or transfer rights through relevant parties |
| Charge-off | Accounting recognition of a loss; not by itself proof of forgiveness or a right to collect |
| Collateral | Property supporting an obligation under the relevant security arrangement |
| Cure | Correction of a default or exception as defined by the relevant terms |
| Cutoff date | Date at which the offered population, balances, and statuses are measured |
| Data room | Controlled repository for authorized diligence materials |
| Data tape / loan tape | Structured account- or loan-level data set describing the offered assets |
| Deficiency | Claimed amount remaining after an applicable collateral disposition or other credit, subject to accurate calculation and legal requirements |
| Delinquency | Payment status measured using a stated method and date |
| Discount rate | Rate used to translate assumed future cash flows into present value |
| Dispute | Challenge to an obligation, balance, reporting, or other account matter; record its scope and status |
| Distressed debt | Broad market term for credit under material stress; not a uniform accounting classification |
| Due diligence | Review of evidence, assumptions, risks, operations, and terms before a decision |
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E–L: Eligibility, structures, and pricing
| Term | Working definition |
|---|---|
| Eligibility | Agreed criteria for including an account in a review, bid, or transfer |
| Escrow | Funds or property held under an arrangement for a specified purpose; mortgage servicing escrow differs from transaction escrow |
| Exception log | Record of issues, affected assets, evidence, owners, and proposed resolutions |
| Face amount | Stated amount of a claim or instrument; does not necessarily equal value or current recoverable balance |
| Forward flow | Contractual framework for repeated transfers of defined eligible assets |
| Gross collections | Receipts before the costs specified in the analysis are deducted |
| Guaranty | Separate undertaking supporting another party’s obligation, subject to its terms and enforceability |
| Haircut | Informal term for a reduction from a specified reference amount; always identify the denominator |
| Holdback | Consideration temporarily retained under agreed release conditions |
| Indicative bid | Preliminary proposal subject to the stated conditions, diligence, and documentation |
| Investment-to-value (ITV) | Acquisition price divided by the supported collateral value used in the analysis |
| Judgment | Court determination of an obligation or rights; amount, status, and enforceability require review |
| Key performance indicator (KPI) | Defined operating measure used to monitor a portfolio or process |
| Lien | Interest or claim against property securing or supporting an obligation, with priority determined by applicable facts and law |
| Loan-to-value (LTV) | Specified loan balance divided by the stated collateral value; identify dates and balance basis |
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M–R: Recovery and transaction terms
| Term | Working definition |
|---|---|
| Media | Industry shorthand for supporting account documents and records |
| NPL | Non-performing loan under the definition used for the relevant reporting or transaction context |
| Net collections | Collections after the specifically identified recovery and servicing costs |
| Net present value (NPV) | Present value of modeled cash inflows minus modeled cash outflows |
| Off-market sale | Privately distributed sale opportunity rather than unrestricted public marketing |
| Original creditor | Entity that originally extended the credit or created the receivable, as relevant to the product and legal context |
| Placement history | Record of prior servicing, collection, or legal assignments and outcomes |
| Portfolio | Defined group of accounts, loans, claims, or other assets |
| Price denominator | Balance or other measure to which a quoted purchase percentage applies |
| PSA | Purchase and sale agreement governing the specified transfer |
| Qualified buyer | Buyer evaluated against the process’s stated mandate, capital, operating, and legal requirements; not a universal certification |
| Recovery curve | Modeled or observed pattern of recoveries over time for a defined cohort |
| Recourse | Contractual or other basis for seeking a remedy against a party after the transaction |
| REO | Real estate owned following acquisition of title, distinct from a loan secured by real estate |
| Repurchase / put-back | Remedy requiring a transfer back or repurchase under specified conditions |
| Re-performing loan | Previously distressed or non-performing loan that has resumed payments under the stated definition |
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S–Z: Servicing, transfer, and measurement
| Term | Working definition |
|---|---|
| Saleable balance | Balance of accounts and components eligible under the proposed transaction definition |
| Servicing | Administration of accounts, payments, records, communications, and related responsibilities |
| Settlement | May mean transaction closing or resolution of an account; distinguish the context |
| Spot sale | Sale process for a specific pool rather than a recurring future-delivery framework |
| Statute of limitations | Legal time limit affecting specified proceedings or remedies; application varies by jurisdiction and facts |
| Stratification | Grouping assets into defined segments for analysis |
| Tape reconciliation | Testing account counts, balances, and other controls against authoritative source records |
| Time-barred debt | Debt for which the applicable limitation period for specified legal action has expired; other rules may still apply |
| UPB | Unpaid principal balance; separate it from interest, fees, costs, and total claimed balance |
| Validation information | Information required in the applicable debt-collection context, including Regulation F where it applies |
| Vintage | Grouping by a defined origination, charge-off, or other event period |
| Workout | Negotiated or managed response to credit distress, such as modification or another permitted resolution |
| XIRR | Cash-flow return calculation using actual dates; results depend on complete cash flows and the calculation’s behavior |
| Yield | Return measured under a stated method and assumptions; coupon and realized yield differ |
| Zero balance | Reported balance of zero under a specified definition; verify status and treatment rather than inferring it from a blank field |
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Put definitions to work
Use the data dictionary for field-level conventions and the valuation methodology for cash-flow analysis. For the relationship between classifications, read NPL, charged-off, and distressed debt.
This page provides general information for institutional and commercial readers. It is not legal, tax, accounting, investment, or transaction-specific advice. Requirements and outcomes depend on the assets, parties, jurisdictions, and agreements. Obtain appropriate professional advice for a proposed transaction.