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Accounts receivables represent money owed to a company by the customer for goods or services delivered but not yet paid for.
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The act of one business acquiring the shares or assets of another business
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Amount expressed as percentage of approved invoice value which will be paid out or advanced immediately after raising the invoice
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Encompasses funding against debtors in the form of factoring or invoice discounting, and can incorporate an element of funding against stock, property, existing plant and machinery. Also includes hire purchase and leasing products to fund assets in the form of new plant, equipment and vehicles. Can be extended to cover the funding of payroll specifically for recruitment agencies.
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Financing for the purchase of assets in exchange for a security interest in those assets. The most common kind of asset financing is to extend loans to purchase company cars, vans, machinery and equipment.
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Cashflow finance is an umbrella term for solutions to improve a company’s flow of cash by obtaining finance against current sales and stock value. Examples of Cash flow finance include factoring and invoice discounting.
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The value of your sales ledger expressed as percentage accounted for by your biggest client or clients.
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The interest rate you will be charged on the money lent to you (usually expressed in amount over bank base rate).
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Credit insurance is a policy that is bought to cover losses due to unpaid accounts receivable.
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Credit management is generally a broad term used to denote the management of people’s accounts receivable.
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A liability or obligation in the form of bonds, loans, mortgages or overdrafts owed to another person or persons and required to be paid by a specified date (maturity).
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A credit management function such as factoring or invoice discounting is a very useful tool here, especially if you are a new or growing business.
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Financing by entering into bonds, loans, mortgages or overdraft agreements.
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The facility offers balance sheet protection, effectively protecting your largest asset (The accounts receivable).
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The ratio of credit notes to invoices you issue.
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The interest deducted prior to advancing or lending money against outstanding invoices.
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The period of time during which an asset has economic value and is usable
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Ownership interest in a firm.
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Financing by selling ordinary shares or preference shares to investors.
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A financial transaction where a business sells its unpaid invoices to a factoring company at a discounted rate.