Brex Learning Center


Late Charge

A late charge is a penalty fee that a lender charges to a consumer for delinquent payments, such as making a minimum credit card payment past the due date. Lenders impose these charges to encourage consumers to make payments on time. The terms of late charges vary by lender.


A lender is an individual, financial institution, or public or private group that lends money to borrowers over a stated period with the expectation that the borrower repays the funds with a fixed or variable rate of interest. Upon agreement, a lender will advance the funds to the borrower. The borrower is then required to repay the funds, either as a lump sum or in payments at regular increments. These repayments include the principal plus any interest or fees.


A lien is a legal claim against a property, which can be granted by the owner, by law, or acquired by a creditor. It serves to guarantee an underlying obligation, such as a loan repayment. In the event where those underlying obligations are not satisfied, the creditor can seize the asset, sell it, and recoup the amount owed. The owner cannot sell any property that is the subject of a lien unless they have the consent of the lien holder.

Line of Credit

A line of credit (LOC) is an arrangement between a financial institution and a customer that allows the borrower to access an open-ended, revolving loan up to a pre-approved credit limit. The lender bases this limit on the borrower's creditworthiness. With a LOC, the borrower can withdraw funds at any time, as long as they meet set requirements and do not exceed the maximum amount. Once the borrower makes the repayments plus interest, the credit replenishes and is once again available to withdraw. LOCs may be unsecured or secured against an asset

Loan Fee

A loan fee is an up-front fee that a lender charges to a borrower for processing their loan application. These are usually nonrefundable and can apply to various types of loans. The fee amount varies by lender, with some not charging any fees to borrowers for the loan approval process.