Money owed by a company to its creditors.

All monies a business is owed in return for the provision of its services.

Using amounts owed by customers as collateral in raising a secured short-term loan. In case of default, the lender has the right to collect receivables directly from the named debtors.

The type of funding that is obtained by a business for the purpose of buying another business.

The process where one business purchases the shares and assets of another, ultimately taking control of that company.

Expressed as a percentage of the full invoice value, this is the sum that is released by the funder after the client raises an invoice, typically within 24 hours of its issue.

A report, usually generated from the invoice date, summarising the outstanding balances for each of the client’s debtors over a specific period.

An annual return is a picture of a business's present signed up information on the Annual Return day. An Annual Return ought to not be confused with a firm's yearly account.

An apostille is an international certification affixed either to the original legal document or to a notarized copy of the original legal document that allows to confirm the authenticity the signature, capacity and seal of the said document’s emitter. It is obtained and used in the countries part to the Hague Convention Abolishing the Requirement of Legalization for Foreign Public Documents (“Hague Apostille Convention”). It eases the acceptance by authorities or regulated operators like banks of documents originating from another member State. For the full list of countries part of the Hague Apostille Convention, please check the following link : https://www.hagueapostille.co.uk/hague-members

Apostilles are affixed by competent authorities designated by each member State. For instance, in the United Kingdom (“UK”), the apostille is affixed by the UK Foreign and Commonwealth Office which is also known as the legalization office which can create confusion with the legalization procedure.

Impartial analysis and evaluation conducted in accordance with established criteria to determine the value of something.

The method used to determine an asset’s value. The appraisal approach values an asset on several factors, such as cost, the income it generates or a comparison of the market value of the asset.

The debts the invoice finance company are prepared to fund or purchase.

A legal document filed with a government body that creates a corporation.

The procedure used to determine the value of a property or the income of an entity, in order to charge taxes to that property or entity.

A business loan secured whereby the asset being bought is used as collateral.

A funding solution that releases cash against assets on a business’ balance sheet, including property, plant, machinery, stock and debtors.

Anything that a company owns with a residual monetary value.

The mechanism by which the funder obtains the legal rights to collect monies directly from the client’s debtors, from which the funder retains the factoring charge before forwarding the difference to the client.

Any other business that a company either wholly or partially owns, or has an element of control over.

The amount of cash the client is able to draw each day should they require. This figure is calculated by multiplying the approved debts by the advance rate, minus the amount already drawn plus charges accrued to date.

A report that summarizes all of an entity’s assets, liabilities, and equity as of a given point in time

A mortgage that requires a larger than usual one-time payment at the end of the term. This allows lower payments in the years before the balloon payment becomes due.

A mortgage which does not fully amortize over he term of the note, leaving a balance due at maturity.

An option contract where the strike price increases by a certain ratio after the price of the underlying asset reaches a predetermined amount.

A lump sum payment that is attached to a loan. This payment is typically made at the end of the loan period.

A letter confirming that a loan or line of credit has been established with specific financial institution.

A promise from a bank or lending institution that if a borrower defaults on a loan, the bank will cover the loss.

An agreement between two parties that contains a promise by each party to fulfill certain obligations to fulfill it.

A document that transfers ownership of a asset from one party to another.

A document that shows the amount owed for goods or services received on credit.

A mortgage that is used to fund the purchase of more than one piece of property.

A term used to describe a business that operates in a building rather than virtually or online.

A short term loan advanced to cover the period between the termination of one loan and the beginning of another.

Insurance that covers damage to bridges.

A short term loan advanced to cover the period between the termination of one loan and the beginning of another.

A person who acts as an agent for others, as in negotiating contracts, purchases, or sales in return for a fee or commission.

Formal approval of building plans by the designated government agency as meeting the requirement of prescribed codes.

A piece of property or equipment purchased for business use.

The method by which a business owner intends to get out of an investment.

An expense incurred in the course of business.

An agreement in which debts incurred by a business are the responsibility of the business. It shifts the responsibility for debts incurred by the business owner to the business itself.

Insurance that protects a business in the event of a lawsuit.

Conversion of the retained earnings of a firm into capital through a new issue of stock.

The interest rate used to calculate the present value of a number of future payments.

A measure of a company’s immediate financial health that is calculated by cash receipts less cash payments over a specific period in time.

Any funding solution that is primarily aimed at easing a company’s immediate cash flow.

The measurement of a company’s cash return on invested assets. It is determined by dividing a company’s gross cash flow by its gross investment.

A statement every publicly traded company must file each quarter indicating all cash inflows and cash outflows from all sources, whether they are business activities or the company’s investments.

A financial statement outlining a company’s financial activities that has been prepared by a Certified Public Accountant (CPA).

A chapter of the United States bankruptcy code which states the terms under which a small company may file for bankruptcy protection while it prepares a reorganization plan.

A chapter of the United States bankruptcy code which states the process of the reorganization of a bankrupt company under the supervision of a court.

A chapter of the United States bankruptcy code which states a type of bankruptcy that may be filed by family farmers or family fisherman.

A chapter of the United States bankruptcy code under which individuals may attempt to restructure their finances in order to repay their debts.

A chapter of the United States bankruptcy code which allows proceedings for a foreign debtor or other related parties to access United States Bankruptcy Courts.

A chapter of the United States bankruptcy code under which companies and individuals liquidate their assets in order to repay their debts.

A chapter of the United States bankruptcy code available exclusively to municipalities, that assists them in restructuring of their debts.

An item of property other than real estate.

A mortgage that provides for a security interest in assets other than real estate to secure the loan.

The expenses associated with buying real estate.

An item of value that is pledged to guarantee repayment of a loan.

When a borrower pledges an asset as collateral in the event that the borrower defaults on a loan.

An asset backed security backed by the receivables on loans, bonds or other debt.

A loan to a business rather than to an individual consumer to provide either working capital or to finance a major capital expenditure.

A type of insurance that provides coverage to a business to protect against claims for bodily injury or property damage.

A long-term loan typically provided by banks or building societies to provide cash to purchase a commercial property. Repayments on the loan, plus interest, are made at a fixed or variable rate at monthly or quarterly intervals, depending on a company’s individual circumstances.

Property owned to produce income.

A loan secured with commercial rather than residential property.

The percentage of the client’s sales ledger value that is accounted for by its biggest client(s)

An invoice finance facility where a funder releases cash against a business’ debtors within 24 hours of the issue of invoices. The confidential aspect does not disclose the use of such a facility from the business’ customers and allows the client to retain control of its sales ledger management.

Form of surety bond specific to construction that guarantees the performance of the builder according to project specifications.

A lien that provides builders and contractors legal recourse to get paid for work and materials purchased for a project.

A short term loan used to finance the construction of a home.

A short term loan used to finance the construction of a home.

A relationship whereby a business buys and sells products to and from the same customer.

The interest /discount rate a client will be charged on top of the money they are lent, typically expressed in the amount over the specific lender’s base rate or BoE Reference Rate.

Trade credit insurance protects businesses from debtor non-payment that could arise from insolvency or protracted default (i.e. non-payment after six months), where the lender assumes the risk and will pay the client a percentage of the sales ledger value in such an event. This can either be provided as a standalone product or incorporated into a non-recourse invoice finance facility, and is subject to designated credit limits

Designated limit assigned by an Insurer. Also, the amount of credit a client is prepared to extend to any of its customers

A term used to describe a company’s management of its accounts receivable.

he account which shows the financial obligation between the invoice financier and a client; this is a total of all prepayments made and all fees accrued on the account less all collections received from the client’s customers.

Any assets that are expected to be converted into cash within 12 months of entry onto the balance sheet, including stock and debtors.

The current price an asset would receive if it were sold.

Monies owed to a business or organisation in the form of loans, overdrafts and outstanding invoices.

The ratio of a company’s ability to pay off its incurred debt.

A measure of the ratio between a company’s assets provided by creditors to assets provided by shareholders.

The process of retrieving monies owed. This can either be performed in-house or be outsourced to a specialist debt collection agency or provided as part of an invoice finance facility via the factoring company.

The combining of several debts into a single, more favorable loan.

Corporate finance facilities where the client borrows money such as loans, bonds, mortgages or overdraft agreements.

The restructuring of the terms of a loan to a company in order to avoid default on payments.

The ratio of a company’s total debt compared to its total capital, its debt and equity combined.

Debtor protection is incorporated into a non-recourse invoice finance facility, safeguarding the client from debtor non-payment as the funder assumes the risk, subject to designated credit limits. It is similar to credit Insurance, only it is provided by the funder.

A deed in which a borrower transfers all interest in a real property to the lender to satisfy a loan that is in default to avoid foreclosure.

The failure by a company to pay its legal obligations of debt repayment when due.

A binding judgement in favor of a party based on a failure to act by the other party.

The risk that a company will be unable to make necessary payments on their obligations in a timely manner.

A judgment against a borrower whose mortgage foreclosure sale did not produce enough funds to repay the loan in full.

The ratio of credit notes issued by the client to invoices. This also accounts for write-offs and reassignments.

A funder purchases an asset on a business’ behalf before leasing it to the client in return for regular payments, plus interest.

Directors are designated to run a business.

Debts against which a lender will not provide funding for reasons such as they are too old (typically from 90 or120 days, depending on the funder), irrecoverable, disputed by the debtor, or if the debtor is renowned for its bad credit history.

An invoice finance facility where the funder releases capital against debtors within 24 hours of an invoice’s issue, boosting the client’s cash flow. Unlike Confidential Invoice Discounting (CID), the customers are aware of the funder’s involvement. The client retains the collection function in-house.

The sum (equivalent to interest) that is charged on the amount of borrowing. This is usually applied daily and debited monthly.

The process of investigating an asset prior to purchase to ensure there are no unexpected problems with the asset.

Is money paid by a buyer showing commitment to a purchase after a seller has accepted the buyers offer.

Refers to a company’s earnings before the deduction of interest, taxes and amortization expenses.

A ratio used in accessing a company’s financial staying power by determining if it is profitable enough to pay off its interest expenses.

The period within which an asset has an economic value and is efficiently functional.

The value of an ownership interest in property, including shareholders’ equity in their business.

Equity finance helps businesses to achieve their growth objectives by raising capital from external investors in return for a share of your business.

Ownership shares in a company or property.

A third party agent that holds a document or asset on behalf of a party to be delivered to a beneficiary within a specified time as specified in the escrow agreement.

An agreement that describes the terms by which one party deposits an asset with a third party who will deliver the asset to another party if and when the terms of the contract have been met.

A predetermined plan for an owner to exit their business.

Debts accrued from the sale of goods and services to overseas customers who can be invoiced in either sterling or another currency.

The portion of an item’s worth that is assigned to it by external factors.

The maximum amount a business’ current account balance can be drawn at any one time. This figure can vary in line with turnover.

An invoice finance facility where a lender releases cash against debtors within 24 hours of an invoice’s issue, freeing up capital to boost the client’s cash flow. The factor further provides a dedicated sales ledger management service to recover the debts on behalf of the client. There is also the additional option of a non-recourse facility that incorporates debtor protection, thus protecting the client from debtor non-payment.

The service fee charged by a factor that is usually expressed as a percentage of the client’s sales ledger value, although some operate at a fixed annual fee, which is debited monthly.

A lender that releases funding against a business’ accounts receivable while additionally providing a dedicated sales ledger management service.

The price at which an asset is sold and bought in the open market.

An assessment of the ability to complete a proposed project.

A person who has the power or obligation to act for another.

Corporate funding provided through the purchase of assets in return for a security interest.

The conversion of financial data into useful information for decision making about a company.

Assets owned by the business that are unlikely to be quickly converted into cash, including property, fixed machinery, fixtures and fittings.

Is a debt that the borrower is responsible for repaying regardless of circumstances such as loss of job or illness.

Also known as non-recourse factoring, this is an invoice finance facility where a lender releases cash against debtors within 24 hours of an invoice’s issue, freeing up capital to boost the client’s cash flow. The factor further provides a dedicated sales ledger management service to recover the debts on behalf of the client, while the facility additionally incorporates debtor protection to protect the client from debtor non-payment.

The monthly mortgage payment, which if unchanged for the life of the loan at the original interest rate, will pay off the loan at the end of its term.

A deposit account. Assets in a general account can be sued to cover a company’s expenses and are subject to creditors’ claims.

The common accounting guidelines as determined by the accounting industry that companies use to compile their financial statements.

States all the costs associated with a mortgage. It provides a borrower with information needed in order to select a mortgage.

A company’s income before taxes and deductions.

A company’s profit after deducting expenses associated with making or selling its products.

A company’s overall sales reported for any given period.

A tangible or physical asset. Examples include real estate, oil, gold, or cash.

Currency that is based on an actual fixed item and has value such as gold or silver coins, or a specific type of loan whereby a borrower receives funds secured by real property.

Private partnership of investors that operate with little or no regulation from the Securities and Exchange Commission. Hedge funds operate under high risk methods in hopes of realizing large capital gains.

The original cost of an asset at the time of purchase.

A company that controls other companies through stock ownership but does not typically engage directly in their operations.

To pledge an asset as collateral for a loan.

Tangible or intangible assets that have value and can provide future economic benefits to a company.

A method of determining the appraisal value of a property on the basis of its opportunity cost.

Real estate purchased for the purpose of generating income.

A loan given to purchase rental property.

A certified public accountant from an outside accounting firm who examines financial records of a company.

An area designed and zoned for industrial use.

The value of debts disapproved by the funder, commonly because of disputes, overdue balances, and those invoices that are above the client’s designated funding limit.

The initial investment that is paid into a project at the beginning.

A situation where sufficient funds are not available in an account to cover a demand of payment.

A rate at which interest is paid by a borrower for the use of money borrowed from a lender.

When a company or individual from one nation invests in assets of a company based in another nation.

A loan made to a company using its inventory as collateral.

An investor is the proprietor of a firm restricted by shares.

An invoice finance facility where a lender releases cash against debtors within 24 hours of an invoice’s issue, freeing up capital to boost the client’s cash flow. Unlike factoring however, the client retains control of the sales ledger management. There is also a non-recourse option that incorporates debtor protection to protect against debtor non-payment, as well as a confidential offering to conceal the facility from the client’s customers.

A funding solution that primarily releases capital against debtors through invoice discounting and factoring to boost the client’s cash flow, but can additionally provide funding against other assets on the balance sheet through asset based lending, including stock, property, plant and machinery.

A form of short term borrowing used to improve a company’s working capital and cash flow.

A business deal in which two or more company’s enter a partnership but otherwise retain their distinct identities.

A foreclosure that goes through the court system.

A second (or third or fourth) mortgage on the same property.

A written legal agreement used to purchase real estate.

a) an option that is associated with a lease contract and is used for the purpose of granting the lessee the right to extend the lease beyond its original length. Often the lessee will be required to pay a premium for this option. b) when a company purchases a dwelling and pays rent on the land to the landowner..

A funder purchases an asset before leasing it to a business in return for regular payments, plus interest, to help the client purchase an asset without compromising its cash flow.

A type of contract in which a tenant is given the right purchase the leased property under certain circumstances.

The payments due to the lessor by the lessee in return for renting an asset, determined by its value, the duration of the lease and the interest to be paid.

A type of contract in which a tenant is given the right, but not the obligation to purchase the leased property often at a predefined price and time.

The Company who rents an asset from a financier in return for regular payments.

The Company who supplies an asset to a lessee in return for regular payments, and has full ownership and responsibility over its maintenance costs.

A letter indicating a willingness from one party to another to enter into a contract.

A letter from a bank guaranteeing a buyer’s payment to a seller. In the event that they buyer is unable to make payment, the bank will cover the outstanding amount.

A legally binding obligation payable to another entity.

A legal contract between two parties in which the contractual owner of the property gives permission to another to use that property.

A legal claim against an asset which is used to secure a loan and which must be paid when the property is sold.

LLP represents the Limited Liability Partnership that resembles regular company collaboration with the one distinction being that the individual liability of the companions is restricted.

An asset that can be converted into cash quickly with little or no loss in value.

A written notice that a lawsuit regarding the title to real property or some interest in that property has been filed.

A fee charged to process an application for a loan.

Assurance by a lender to make money available to a borrower.

A committee that reviews and either approves or rejects a loan application that the initial loan officer does not have authority to approve.

A noncash expense that books use to account for future losses on loan defaults.

The interest rate participating banks offer to other banks for loans on the London market. It is the most widely used benchmark for short term interest rates in the world.

When a company retroactively chooses to apply a net operating loss in the current year to the previous profitable year(s) in order to obtain a tax refund for monies already remitted on the profits earned in those years.

A new management team assumes control of a company after acquiring its shares or assets.

The existing management team assumes control of its parent or non-group company after purchasing its shares or assets.

A method of valuing an asset by comparing dates from the sales of similar assets that have occurred within the same geographic area and within a recent timeframe.

Via a contractual arrangement, additional assets are able to be leased keeping the same terms and conditions, without having to renegotiate the contract.

A document created when a property is purchased for the first time that is filed in the records for public land for the purpose of keeping track of the initial mortgage and any liens that might be attached to the property.

A guarantee of payment to builders or contractors for the monies owed to them.

When the parties to an agreement all have the same understanding of the terms of the agreement.

The joining of two companies to create a single, larger entity.

A general term used to refer to the consolidation of companies.

Mezzanine finance falls in the middle of two main forms of funding, debt and equity. It is typically used to support specific projects for growth and acquisition. A blend of debt and equity financing, mezzanine is one of the highest-risk forms of borrowing, but offers some of the greatest returns to businesses.

A type of financing in which a company issues debt that the holders may convert into equity if the debt is not repaid in full on time.

The total of a household’s adjusted gross income and any tax exempt interest income you may have.

A company or individual that originates mortgages.

The national association that represents the real estate finance industry.

A company or individual that places mortgage loans with lenders but does not originate the loan.

A permanent restructuring of a mortgage where one or more of the terms of a borrower’s loan are changed to provide a more affordable payment.

Bonds backed by payments on mortgage loans.

A loan repayment schedule in which the outstanding principal balance increases rather than amortizing because the monthly payments do not cover the full amount required to amortize the loan. The unpaid interest is added to the outstanding principal to be paid at a later time.

A company’s total earnings after costs of doing business, depreciation, interest, taxes and other expenses have been deducted.

A situation where a company’s expenses exceed income during a given period of time.

The amount by which a company’s operating revenue exceeds operating expenses during a given period of time.

The cash available to a business to spend, calculated by working out its current assets less its current liabilities.

A company’s assets minus liabilities.

A mortgage obtained with no income, no asset and no employment verification.

A mortgage that is obtained without disclosing income or bank statements on the loan application.

The nominee director service may be used where a client doesn’t wish to be personally appointed or has to meet local requirements. The name of the director will appear in the corporate documents, in any business contract and sometimes in the jurisdiction's business register.

Upon appointment of a nominee director, a Nominee Service Agreement will be signed between the client and the nominee. It will guarantee the client that the nominee can only act or sign documents upon the client's request and with the client's prior approval. Professional directors introduced by UKStartups.co work with the highest level of integrity and confidentiality.

The nominee shareholder is appointed in order to detain shares on behalf of the owner of the company. The name of the shareholder will appear in the corporate documents, and sometimes in the jurisdiction's business register.

Upon appointment of a nominee shareholder, a Nominee Service Agreement (declaration of trust) will be signed between the client and the nominee. Nominee shareholders introduced by UKStartups.co work with the highest level of integrity and confidentiality.

An invoice finance solution which benefits from the addition of debtor protection to shield the company against debtor non-payment through either insolvency or protracted default, subject to designated credit limits.

A loan secured by the revenue of the project the loan intends to fund.

A situation where the amount available in an account is insufficient to honor a cheque drawn on that account.

The notarization is the official fraud-deterrent process conducted by a notary public commissioned by a public authority to help deter fraud. It is often a three-part process that includes vetting, certifying and record-keeping. Notarizations are sometimes referred to as "notarial acts." By notarizing a document by a duly commissioned and impartial notary public, this gives the assurance that a document is authentic, that its signature is genuine, and that its signer acted without duress or intimidation, and intended the terms of the document to be in full force and effect.

The ratio of units occupied versus the total number available in a building during specified period of time.

A mortgage that may allow the borrower to increase the amount of the mortgage at a future time.

A company’s earnings before depreciation minus taxes.

Expenses incurred in carrying out an organizations day to day activities that are not directly related to production.

The income generated by a company in a given time period without consideration of capital spending or taxes.

A contract through which a seller gives a buyer the right, but not obligation, to buy or sell something at a predetermined price within a specified time period.

An agreement between parties that is partly or entirely dependent on spoken words.

An expense incurred and paid for by an individual for personal use, or relating to one’s employment that may or may not be later reimbursed.

Where the funder occasionally releases additional cash, over and above the amount available under the agreed terms, on a discretionary basis and for a short period, ranging from a single day to a few weeks to help the client deal with a period of limited cash flow.

A situation where a company has issued more debt and equity than its assets are worth. This situation is typically remedied by the company buying back shares or paying off debt.

Using an asset as collateral on a loan whereby the value of the asset exceeds the value of the loan.

Ongoing operational expenses incurred by a business.

Financing where the buyer borrows from the seller instead of, or in addition to, a bank.

A situation where the home owner resides in the home in which he or she owns.

Face value. Passive Income – income that does not come from active participation in a business such as income from rent or a limited partnership.

Equal in all respects.

Is a provision in some mortgage contracts that allows the borrower to exclude some of the collateral from the mortgage contract.

A title that is clear and free from any liens attached to it.

Security interest in the collateral securing a debt that is protected from third party claims.

An annual employee review to evaluate an employee’s overall job performance.

A written guarantee from a third party guarantor given to a client by a contractor to ensure payment of money in case the contractor fails to fulfill the entire contract.

A document or spreadsheet that details personal assets and liabilities without including any business related assets or liabilities.

An agreement that makes you liable for your own or a third party’s debts or obligations.

An individual’s total earnings during a given period.

Personal possessions, other than real estate or buildings. Personal property is movable and includes tangible and intangible items.

A second mortgage taken by a home mortgage borrower at the same time as the first mortgage. It is generally used to eliminate private mortgage insurance payments by lowering the loan to value ratio of the primary mortgage below 80%.

Private Investment in Public Equity

An investment company whose purpose is to collect investment funds from a group of individual investors and invest them in financial securities.

The sale of securities directly to an institutional or private investor, rather than to the general investing public.

The point at which a sale is made and the ownership is transferred from the seller to the buyer.

A type of insurance that can protect the policyholder from the risk that a foreign government will make significant changes to its policies that would result in a loss of investment.

A unit trust in which an investor contributes funds that are then invested by a third party.

Income derived from various types of investments and includes capital gains, interest, dividends and royalties.

Investment in securities simply for financial gain without creating long term interest in, or management control of, the organization.

The professional responsible for the securities portfolio of an individual or institutional investor. The portfolio manager has the fiduciary responsibility to manage the assets prudently and choose which asset types are appropriate for the portfolio.

Reinsurance whereby the reinsurer takes on a portion of the ceding insurer’s entire portfolio.

A legal document appointing another person to make decisions on your behalf.

A legal document that transfers the legal right to manage property to the attorney in the event an individual is unable to do so.

An evaluation by a lender of a potential buyer that determines if the buyer qualifies for a loan and/or the maximum amount the lender would be willing to lend the buyer.

Expenses that are paid in advance of actually incurring them such as rent or insurance.

Charges made in connection with a loan that must be paid by the borrower at the time of close of the loan.

Payment made in advance for insurance services that are to be provided over a specified period of time.

Interest on a loan that is paid in advance of the time it is earned by the borrower.

To pay a debt in full before its official due date.

An additional fee imposed by a lender when a loan is paid in full before its official due date.

Someone who is considered to have below average credit risk.

The best available interest rate under most circumstances. It is used as a benchmark for interest rates on business and consumer loans.

A lien on an asset that has priority over other liens attached to the same property.

A company whose ownership is private.

Investment in an organization that is not listed on any stock exchange.

A method of generating financing through private ventures to fund long term public projects.

An insurance policy purchased by the mortgage holder on behalf of the lender to protect the holder from default of a mortgage loan.

The sale of a security directly to a limited number of investors. It is not offered to the public.

The process of transferring an enterprise from the public sector to the private sector.

A financial projection based on assumptions.

A financial forecast based on pro forma income statements.

Costs related to making or acquiring goods or services that directly generate revenue for an organization.

Funds remaining after total costs are deducted from total revenue.

A financial report that shows a company’s revenues and expenses over a given period of time.

Overall measurement of the profitability of a trading system.

A type of financing where project debt and equity used to finance a project are repaid from the funds generated by the project.

The application of processes, methods, knowledge, skills and experience used to achieve a project’s objectives.

A written, signed unconditional promise to pay a certain amount of money at a specified time.

A document that demonstrates an individual has enough money for a transaction.

A claim against property of someone who owes money.

The operation, control and oversight of residential, commercial and/or industrial real estate.

A tax assessed on the market value of real and personal property.

A company whose shares are traded on a stock exchange.

A method of accounting, using market value for the consolidation of two entities’ net assets on a balance sheet.

A statement that is given to the customer whenever a position in a contract is offset or closed.

An option following a lease contract that allows the lessee to purchase the asset outright at either its fair market value or a predetermined amount.

The price at which property is purchased.

A mortgage issued to the purchaser of a home by the seller as part of the purchase transaction. This mortgage is used when the purchaser does not qualify for a bank loan.

A document that is made, signed and dated by a qualified appraiser in accordance with generally accepted appraisal standards.

An individual who has earned an appraisal designation from a recognized professional organization or has met a certain minimum education and experience requirements.

A report made by a public company to report their quarterly performance.

The total amount of a company’s quick assets divided by the sum of its net liabilities.

The minimum number of voting members of a group who must be present at a meeting in order to conduct business.

The amount of revenue an investment generates over a given period of time as a percentage of the amount of capital invested.

Land as well as any physical property attached to it.

A sale of real estate for an amount that is less than the amount owed on the property.

A debt that has been returned to the client from its funder.

An amount due to a company by a customer, supplier or any other party.

Matching the balance of the client’s sales ledger to the balance recorded by its invoice finance provider; a process usually undertaken at monthly intervals, to reflect the previous month-end position. Deadlines for this process vary from funder to funder.

The accounting process used to compare two sets of records to ensure the numbers are accurate and the values are balanced at the end of a certain period of time.

An invoice finance facility that provides access to cash but does not incorporate bad debt protection through credit insurance, potentially leaving the client vulnerable to debtor non-payment through customer insolvency or protracted default.

The period in which a funder will advance monies against an outstanding invoice. This typically ranges from 60-120 days, although it can sometimes cover up to 150 days.

A charge issued by some funders (relating to factoring facilities only) to cover the cost of collecting debts that have outstretched the recourse period, usually reflected as a percentage of the outstanding amount. This enables funders to cover their administration cost on overdue accounts, whilst charging a lower cost for those customers who pay quicker and are thus representing the funder and their client alike with a lower level of risk.

Repaying an existing loan using a new loan that is typically on better terms (possibly with a new lender) which may be more effective for the business in the long-term.

Income that an investment can earn over the minimum rate of return.

The value of an asset following a lease period.

Altering the business’ structure through downsizing and reviewing the current funding facilities to meet its financial requirements, or to adapt to changes in the marketplace.

A measure of profitability that calculates how many dollars of profit a company generates with each dollar of a shareholders equity.

A measure of profitability represented as a company’s ratio of net income to its equity capital.

The amount of money a company receives during a specific period of time.

The probability that the actual return on an investment will be lower than the anticipated return.

The practice of identifying potential risks in advance and taking precautionary steps to reduce the risks.

Selling commercial property (can include assets) to a financier who will then lease it back over a fixed period in return for regular payments, plus interest, to release capital to boost the client’s cash flow.

An agreement that finalizes all terms and conditions in the buying/selling of a company and/or property.

An appraisal method whereby a market price of a property is estimated based on sales of similar properties in the area.

A legal document indicating that a mortgage has been paid in full.

The market where home loans and servicing rights are bought and sold between lenders and investors.

Debt that has higher priority to be repaid than other debt.

The price charged by an invoice finance provider for its services, typically expressed as a percentage of turnover. This will typically be higher through a factoring facility than with an invoice discounting service.

A company’s total assets minus its total liabilities.

Shares are systems of possession. The portion of possession relies on the variety of shares provided. In other words, a unit of ownership in a corporation or financial asset.

A sale of real estate for an amount that is less than the amount owed on the property.

Any debt incurred by a company that is due within one year.

The stage of a project where work can begin.

Money that is necessary to start a new business.

An arbitrary monetary value that is assigned to a stock for accounting purposes. It is not related to market value.

A business agreement between two companies to work together to achieve specific goals.

A pool of investment assets that attempt to benefit financially from credit spreads between short term debt and long term financing.

A second mortgage on a property that is not paid off when the first mortgage is refinanced.

A formal agreement that states one party’s claim or interest is inferior to that of another party.

An individual with less than perfect credit.

Borrowing subprime debt or loans made to those with less than perfect credit or short credit histories.

A mortgage issued to individuals who are often not qualified. These types of mortgages have an interest rate higher than most mortgages.

A fee or charge that is added to the normal cost of goods or services.

The point at which something provides the optimal balance of costs and benefits in business.

The initial process whereby the invoice finance provider uploads its client’s sales ledger information onto their system.

The sales ledger value that the invoice finance provider will be taking on at the commencement of the facility.

An investor that makes a long term loan at a certain date in the future.

A lien on a tax payer’s property stemming from non-payment of income, property, or other taxes. Tax liens take precedence over all other liens on a property.

A type of ownership of property by husband and wife which allows spouses to own property together as a single entity.

Joint ownership of property by two or more entities in equal or unequal parts.

Parties who jointly own property in equal or unequal parts.

A non-binding agreement that sets forth basic terms and conditions of an investment usually in bullet point format. It is used to develop more detailed binding agreements.

A person who is not a party to an agreement, but might be affected by the agreement.

A funding solution to help businesses overcome the difficulties associated with overseas trading, particularly assisting those that primarily operate in the import and export markets. It provides funding to purchase raw materials and goods from abroad whilst ensuring payment is received for the client’s goods and services, maintaining their healthy cash flow.

A fast, effective and positive change in a company’s performance levels after an intensive care management strategy is employed.

In the securities industry, an underwriter is a company that helps companies introduce new securities to the market. OR In the insurance industry, an underwriter is a person or entity who is liable for insured losses in return for a fee.

The number of units in a building without renters, expressed as a percentage of all units. It is the opposite of occupancy rate.

Value Added Tax is included to the online sales of products and also services and is deliberately put on the customer bill. It is normally billed on many company purchases in the UK; however, it could likewise have an effect on products imported from various other nations.

The cash a venture capitalist injects into a business in return for a proportion of its shares to boost its cash flow, helping it to grow, whilst additionally providing expertise on running it.

The Virtual Office allows your company to have an address in London, Manchester, Geneva, or Hong Kong and to receive mail there, which, in some cases, can lend more credibility to your company.

Shares of stock that allow the owner to vote on company matters.

An inventory financing arrangement whereby a manufacturer assigns its goods as collateral to be controlled by a third party on behalf of the lending institution.

A legally binding assurance that a good or service is as represented and, if not, will be replaced or repaired.

A deed that guarantees clear title to the purchaser of real property.

Funds borrowed by financial institutions in large quantities.

A short time period during which an opportunity must be taken advantage of or lost.

The immediate cash a company has available to spend on assets and its day-to-day operations. This is calculated by deducting current liabilities from current assets.

The difference between a company’s current assets and their current liabilities.

The process of managing a company’s cash flow to ensure its immediate ability to trade isn’t compromised.