Cash Genie: defining the Jargon

At Cash Genie, we know financial lenders use complex jargon which can be quite scary when you are a first time customer. This is why we have put together our own ‘Defining the Jargon’ section, to do exactly what the title suggests; put a meaning to the complex jargon.

All the jargon is in alphabetical order so simply scroll down to the word you need defining, and the Cash Genie will describe it in our own logical magical way!

ACH
An ACH, or Automated Clearing House, is responsible for all the electronic cash transactions that occur daily. In the UK the ACH is BACS Ltd, which is owned by a number of banks and other financial institutions on behalf of the payments industry. Each country will have its own ACH.

AER
The AER means 'Annual Equivalent Rate'. The term is only used in relation to savings and interest based investments. It shows the true rate of interest you will have received by the end of the year taking into account how often interest is added to the account (this is because the payment frequency has a compounding effect on the amount of interest you receive).

Agreement
An agreement is a decision or resolution made between two parties. In a ‘short-term loan instance’, signing a loan agreement makes you responsible for keeping to the agreed arrangements for repaying the loan. Simply put; if we keep to our deal, then we expect you to keep to yours! The agreement will make it official.

APR
APR stands for Annual Percentage Rate, which describes the interest rate for a whole year, rather than just a monthly fee/rate.

Arrangement fee
Whilst some lenders charge an administration fee others may charge an arrangement fee. This fee is charged to cover administration and the reserving of funds for short term loans.

Arrears
‘Arrears’ is a legal term for a type of debt which is overdue after missing an expected payment. If you miss a payment with Cash Genie then you are classed as being in arrears, which may mean you experience problems in the future in gaining credit. However we do offer you the chance to go on a payment plan to avoid being in arrears.

Assets
An asset is something you own, which has some economic value and can be turned into cash. This can be tangible (seen and touched) such as a house or car or intangible (brand, goodwill, computer programmes). If you stay in arrears for a long period of time, then the company may be able to take assets away from you.

BACS Ltd
BACS (formerly the Bankers Automated Clearing Service) is a UK scheme for the electronic processing of financial transactions. This organisation is owned by a group of banks in the UK.

Balance Outstanding
The amount of a loan owed at a particular time

Bank loans
Bank loans for personal use are usually repaid over a year and are for large amounts of money exceeding £1000. The interest for these loans are calculated on an APR basis, which makes it difficult to compare the bank loan service with Cash Genie short-term loans. Bank loans can be hard to apply for and customers may be likely to be declined in the application process, this is why Cash Genie makes it so easy for customers to apply for a loan.

Budget
A budget will provide a forecast of revenues and expenditures, so you can calculate your own remaining balance. By budgeting, you are in complete control of your money and you can see exactly how much money you have to spend on luxury goods!

CAB
A Citizens Advice Bureau (CAB) is a network of independent charities throughout the UK that give free confidential information and advice to help people with their legal, money and other problems.

Cash advance
A cash advance is a small, short-term loan used to cover an expense until your next pay day. The cash advance loan amount plus fee are deducted from your bank account on your next pay day.

Charges
This is the money paid to any business, for a product or service. For example, in any financial institution charges will apply for the service; these may increase if payments are late and penalty charges may also apply.

Consumer Credit Act
The Consumer Credit Act was enforced 1974 and requires most businesses to be licensed by the OFT and obtain Consumer credit licences to protect individuals receiving credit up to £25000. This is now protected by the Consumer Credit Act 2006, and all appeals under the Act are made to the OFT

Credit card
A credit card allows you to borrow money on credit, to pay for goods and services. Credit card companies normally charge high interest rates, unless the balance is repaid on time each month. If the balance is not paid, penalty charges may occur and may be hard to manage.

Credit rating
A credit rating estimates an individual’s credit value. A credit rating is also known as an evaluation of a potential borrower's ability to repay debt, prepared by a credit reference agency. Credit ratings are calculated from individual’s financial history, and their own assets. In general, a credit rating tells a lender or investor, like Cash Genie, the likelihood of the borrower being able to pay back a loan.

Debt
A debt is created when a creditor (eg, Cash Genie) agrees to lend a sum of assets (money) to a debtor (eg, You). In modern society, debt is usually granted with expected repayment such as interest.

Early repayment
Early repayment is when a customer wants to pay back a payment early for a loan. Some companies charge for this or do not allow it, however Cash Genie is happy for customers who want to pay back their loan early.

Fixed-rate Interest
An interest rate that stays the same rate for a specific period of time. This is how Cash Genie charges interest on our short term loans.

IFA
An Independent Financial Advisor is an independent professional who will help you out with any financial queries or worries you face. People use IFAs to explain the benefits or drawbacks of particular financial services.
Interest

Interest is simply the cost of borrowing, and the reward for saving. It is normally expressed as a percentage rate over a period of time, such as APR. However, companies use different measures of interest for different financial services. Therefore, it is important to understand the different measures and how much interest you are paying on a loan.

OFT
The Office of Fair Trading is the UK's consumer and competition authority. Their mission is to make markets work well for consumers, while ensuring that businesses operate fairly. All unsecured loan lenders, like Cash Genie, are regulated by the OFT.

Online payday loans
A payday loan (or payday advance) is a small, short-term loan that is intended to cover a borrower's expenses until his or her next payday. The application process is completed online, without any fax’s or paperwork needed.

Overdraft
An overdraft occurs when withdrawals from a bank account exceed the available balance. The money may still be lent to the customer, meaning the account has a negative balance, however the charges which apply for an unauthorised overdraft can be large.

Payday advance
A payday advance is another term for payday loans, which is described below.

Payday loan
A payday loan is a small, short-term loan, which is used to cover a borrower's payments until the next payday. Cash Genie offers short-term loans between £75 - £750, and charge a fixed rate per pound borrowed regardless of when you apply. Payday loans often help people who find it hard to find credit elsewhere because of a poor credit rating.

Roll-over
In the short-term loan industry, and the payday loan industry you can roll-over your loan to the next month if you can not afford to pay it back. The loan lender will then ask you to pay off the interest this month, but not the amount of the loan. Some lenders will charge you for this process, however Cash Genie offers this service for free so you are able to roll-over your loan for free of charge every month by paying off the interest fee.

Secured loan
A secured loan is a loan in which the borrower pledges some asset (e.g. a car or property) as security for the loan. The debt is thus secured against the collateral — in the event that the borrower does not pay back the charges, the creditor takes possession of the asset and may sell it to satisfy the debt by regaining the amount originally lent to the borrower.

Short term loan
A Cash Genie short term loan is a cash advance between 2 and 30 days, however a bank short term loan may be anything up to a year. To put it simply, it is a short term loan is expected to be paid back in a set short period of time in accordance with the particular lender.

Trust
Trust is based on a relationship of reliance and honesty. In Cash Genie terms, trust is created through a strong relationship between the company and the customer. If the customer is reliable in paying back loans on time, then their trust rating increases and they are able to borrow more money.

Unsecured loan
An unsecured loan is a loan provided to a borrower without them having to provide any security as a back up. Because the risk to the lender of not getting their money back is higher for unsecured loans such as Cash Genie short-term loans, than for secured loans, the interest rate charged is often higher. Unsecured loans are also sometimes referred to as personal loans.