Glossary of Funding Terms - i j k

An index is a money market rate such as the prime rate or a Treasury bill that lenders use to determine interest rates for the loans they offer to customers. An index is used almost exclusively for variable rate loans.
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Short-term loan to provide temporary financing until more permanent financing is available.
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Non- or for-profit institutions that have specialized lending capacities. They obtain capital in the form of equity and low interest loans from a variety of sources, including foundations and other funders, to form a "lending pool." They then serve as "wholesalers" who process large numbers of small loans or investments. This "economy of scale" often allows intermediaries to be more efficient than a foundation or funder could be if it considered each investment individually. Also, intermediaries often develop expertise in a particular field or region that foundations or funders cannot afford to develop. In the context of this study, non-financial intermediaries include community foundations and financial intermediaries include credit unions, venture capital and loan funds, banks, etc.
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A low rate charged by a credit card company for an initial period to entice borrowers to accept the credit terms. After the introductory period is over, the rate increases to the indexed rate or the stated interest rate.
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