In this lesson, we're going to go over some of the common terms and acronyms that a lender may use so that when you meet with them, you'll understand what they're talking about if they slip up and use them, but also so that you might use some of these terms when you speak with them so that you show you understand what you're talking about and that you're prepared. And finally, I may slip up and use them as a form of habit as well in the lessons. So I want you to understand what I'm talking about in the first place. So the first one we're going to talk about is just the letter K. If you see that anywhere, I just want you to know that that is standing for $1,000. Right? So as an example, 100 k is $100,000.

Let's have a little fun for a second, what's 50 k? Right, that's $50,000. What about, let's say 300 k $300,000? Pretty easy, right? So it seems like you're gonna be getting the hang of this. If I use the letter M or a lender uses the letter M after a number that stands for $1 million.

So one is Is $1 million? What is 10? m $10 million? Pretty simple, right? So k for 1000, and M for 1 million. Occasionally you will see a lender actually use m m, most of them just use 1 million, but occasionally I've seen them slip up and use two M's for some reason for 1 million.

So just be prepared. Just know if you see the letter M, they're referring to millions of dollars. Then let's talk about basis points. This is essentially something that's associated with the right it's a quick, easy way to talk about something associated with the right so one, bps or basis points 100, excuse me. VPS is 1%. So let's try an example here.

What is 25 VPS? That would be a quarter of 1% or point two 5%. What would 400 VPS be? That would be 4%. So if you see that they're giving you alone rate of let's call it the Wall Street Journal prime rate plus 400. bps, that means you need to take the Wall Street Journal federal priority and add 4% to it, that would be your right, that typically comes up in variable loans. The next one is loan to value or LTV.

This is the percentage of the value of the collateral that you're giving that they're willing to lend to you. So if you have $100,000 piece of equipment, and the lender says they'll give you an 80%, LTV, that means they loan you $80,000, right or 50% would mean they'd give you 50% of that hundred thousand dollar value or a $50,000 loan. We've talked about this already. There's two different ways you'll see it I have one listed here. DSC is debt service coverage. You'll also see it as DSC r which is debt service coverage ratio.

And then let's talk about CNI which is a type of business loan. This is commercial and industrial loans. And the easiest way for you to distinguish this as if I talk about a CNI loan. These are non real estate based loans. So think about that. Like equipment loans, lines of credit, car loans, anything that's not real estate based so therefore CR e or you may hear them say cre care commercial real estate is anything that's real estate based some lenders use cre only when they're talking about non owner occupied properties, meaning a property that you have for an investment purpose.

So just be prepared for that. But cre is anything real estate based CNI is anything not real estate based. And then the last one for right now as AR you may see him grouped together without the slash, but AR is accounts receivable. And this is if you offer terms to your clients. So real quickly, if you make a product and you then bill your clients and tell them they have 30 days to pay you that is an accounts receivable. If I'm that client and I bought something for $100 You're giving me 30 days from the time I received my bill to pay you.

I'm on your accounts receivable for $100 and the lender will use that in various ways when they're looking at AR as collateral for lines of credit. It and those types of things