Let us jargon-bust for you. Here we define, outline and refine your understanding of the key terms in commercial finance.
Financial intermediaries are entities that facilitate transactions between parties in the financial markets. Success fees
An unsecured business loan is a type of loan that does not require the borrower
In its simplest term, a debenture is a legal document that gives the lender, a
Challenger banks have made significant strides in the banking industry in recent times. These small
When borrowing funds, particularly for a business, it is essential to understand the various factors
A dividend is a distribution of a company’s earnings to its shareholders. When a company
Working capital is a measure of a company’s liquidity and short-term financial health. It is
The Recovery Loan Scheme (RLS) is a government-backed loan scheme designed to support access to
A finance lease is a type of lease agreement in which the lessee (the user
An “up-to-date debtor” refers to an individual or entity diligently fulfilling their financial responsibilities and
The Delphi score is a credit score used to evaluate the risk of a business
In invoice finance, the role of a factor is to purchase invoices from businesses at
Invoice discounting is a type of invoice finance where businesses can borrow money against their
A non-recourse invoice finance agreement allows businesses to obtain immediate funds by selling their invoices
A recourse invoice finance agreement is a type of financing arrangement where a business can
In the world of business financing, two popular options are traditional invoice finance and revenue-based
Amortization is the process of establishing or recording the value over a specific period. This
Crowdfunding has become a popular way for entrepreneurs, innovators, and creative thinkers to fund their
Many of us are familiar with overdrafts as it is one of the few funding
Supplier finance, also known as supply chain finance, is a financing arrangement that allows businesses
Recourse and non-recourse (NR) refer to two different types of loans and the level of
Tangible Net Worth (TNW) is a financial metric that measures the value of a company’s
A service fee is an essential charge that brokerage firms impose to cover the cost
When a borrower seeks a loan, they typically provide collateral to the lender as a
Sales and leaseback is a popular financing option for businesses that own valuable assets such
Financing options are essential for individuals and businesses to acquire assets such as equipment, vehicles,
Asset refinance is a financial tool that allows businesses to use their existing assets to
Hire purchase is a type of financing arrangement that allows a person to acquire an
A bridging loan is a short-term loan that is typically used to bridge the gap
When small businesses need financing to fund their growth and expansion, they often turn to
Businesses can raise capital by selling their outstanding invoices to a factoring company, also known
Selective invoice finance is a flexible financing option that allows businesses to finance specific invoices
When it comes to borrowing money, there are two main types of loans to consider:
Peer-to-peer lending, often referred to as P2P lending, is a form of lending in which
Financial Technology, or FinTech, has become an increasingly popular buzzword in recent years, as technological
Refinancing is the process of replacing an existing loan with a new one that pays
If you’ve never heard of invoice finance, then the concept is fairly straightforward: small businesses
A merchant cash advance (MCA) – also known as a business cash advance – is
Revolving credit is a flexible funding solution, widely considered to be one of the best
Alternative finance is a broad term, encompassing many types of finance solutions. Alternative finance simply
EBITDA stands for Earnings Before Interest, Tax, Depreciation, and Amortization. This is a metric applied
When crafting a loan agreement, it’s essential to create a clear and concise exit strategy
Implementing a soft credit check is a crucial part of the loan and credit card
A credit score is a numerical representation of an individual or business’s creditworthiness. It is
The Annual Percentage Rate (APR) is a critical financial metric that represents the total cost
Depreciation is an accounting term for managing the loss of value over time of a
To get approved for a facility, every lender undergoes a process of assessing and analysing
Open banking is a regulatory initiative that allows banks to securely share access to bank
What is a CCJ? A CCJ stands for County Court Judgement. You may have an
Hire purchase and leasing are both financing options available to businesses and individuals in the United Kingdom. There are a number of key differences between the two options that should be considered before making a decision.
Fred Maude and Jack Carr , co-founders of Addesu, a UK SME. Read on for more insights into this entrepreneur’s business savvy.
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