Write-up by Mark Blayney
The last in the series of this guidebook to company loans and finance raising covers ?property growth finance? through to ?yield?.
House development finance ? Finance intended to fund house advancement and so created to assist finance both internet site obtain and constructing expenses.
Prospectus ? A package of info prepared for provision to potentially interested investors in a flotation.
Prudence ? The accounting idea of recognising losses as soon as they can be identified, but income only the moment they have been earned.
Public limited firm (PLC) ? A business which meets certain statutory requirements such as the degree of its issued share capital and which could consequently be entitled to sell shares to the public. Not all PLCs are nonetheless listed on a stock exchange.
Quick ratio ? See the definition of acid ratio in aspect 1 of this series.
Ratchet ? Arrangement whereby the management?s stake in the enterprise is enhanced as the company hits targets.
Receivable ? The US equivalent to the UK term debtor.
Recourse ? Arrangement where a aspect or invoice discounter can recover any advance made to you in respect of any debt that is subsequently not recovered. A non-recourse arrangement provides you with protection against this.
Regulated loan ? A loan where a first charge is given on a domestic property or on a commercial property exactly where more than 40% of the place is utilized as your residence.
Reserves (1) ? A business?s retained earnings.
Reserves (two) ? In which a factor or invoice discounter decreases your availability to cover any potential exposure (for example to supplier contras).
Rolling bridges ? The use of a series of bridging loans, for instance to fund a phased house advancement project.
Sale and leaseback ? A way of raising cash from an asset which involves promoting it to a third celebration and then renting it back.
Second round funding ? Additional equity investment into a organization with an present external investor (for instance by a venture capitalist to produce a business that has had start up or seed money from a enterprise angel).
Secondary get out ? Sale of a VC?s interest in a business to a distinct VC.
Section 320 ? Provision in the Firms Act that prevents a director acquiring substantial assets (broadly something really worth a lot more than ?100,000 or 10% of the net assets of the business) without having very first getting the consent of the shareholders.
Safety (1) ? A source by way of which a debt can be repaid if the borrower does not make repayments in the normal way, such as a charge above home or other assets.
Safety (2) ? A document which acknowledges that the holder has selected rights (such as repayment of a debt from the issuer).
In the US can be extended to cover a share certificate.
Self certification ? The method whereby a borrower confirms that they are capable to make repayments on a loan rather than proving it by offering accounts.
Share capital ? The capital contributed to a firm by its shareholders.
Shareholders funds ? The total book value of a company (the net assets on its balance sheet) which is owned by shareholders.
Little Firms Loan Guarantee ? A scheme in which the Government offers a partial guarantee to lenders for loans manufactured to small organizations.
Sole trader ? An individual in enterprise in their very own name.
Stapled finance ? A package of possible borrowings pre-arranged for the purchaser by the seller of a organization.
Statement of source and application of funds (SSAF) ? Statement displaying how income generated by the organization combine with investment in or realisation of assets, collectively with credit received or repaid, outcome in a movement in the corporations cash.
Stock (1) ? A company?s trading stock, which will include raw materials, work in progress, as well as its completed items stock.
Stock (two) ? A company?s shares.
Stock days ? A measure of the time taken in converting items bought into product sales.
Stock exchange ? A marketplace in which shares and other securities can be traded.
Structured loans ? Loans from an asset based mostly lender across much more than a single form of asset (eg factoring and a house loan).
Sub prime ? Borrowers with important levels of adverse creating them unattractive to mainstream lenders.
Swing ? Motion in a bank present account.
Syndication ? Situation where a quantity of funders combine to jointly fund a project.
Term loan ? A loan repayable by an agreed level of installments over a period of years.
Top rated up funding ? Additional mezzanine or equity finance to cover the distinction between total costs of a home improvement project and the sums offered below normal property development finance.
Trade finance ? Funding for trading transactions such as importing items for resale.
Transaction at an undervalue ? Promoting an asset at much less than its fair value. In the event of an insolvency, a liquidator will evaluation substantial transactions preceding the insolvency and can act to set aside transactions at undervalue.
VC ? Venture Capital or Venture Capitalist.
Veil of incorporation ? The protection provided to shareholders by a company?s restricted liability.
Vendor finance ? See deferred consideration.
Venture capitalists (VC) ? A firm set up to hold investors? income and to invest it in higher development opportunities. Typically look for a return equivalent to over 30% per annum and will want to hold an investment for 3 to five years before exiting. Generally have a tendency not to be interested in offers beneath say, ?0.5m investment.
Whitewash report or agreement ? Accountant?s report required exactly where money is to be raised for a buy against the value of a target company?s assets.
Work in progress ? Goods which are in the process of manufacture but which are not but finished, or operate on a contract which is not however full.
Working capital ? A business?s latest assets much less its existing liabilities.
Working capital cycle ? The notion that a business?s operating capital turns over as it goes through its cycle of trade suppliers delivering goods which become firstly stock and then once sold, debtors with the cash received from debtors then becoming utilised to pay suppliers.
Yield ? The amount of return received (E for earnings) for the value (P) paid. Typically shown as a percentage.
We hope this quick series has helped to de-mystify some of the jargon utilized in finance.
About the Author
Mark Blayney is a organization finance raiser and author. For more information on business loans or any element of finance for owner managed businesses speak to him at: http://www.business-loans-information.co.uk
watch free movies online montreal canadiens montreal canadiens jason aldean act new york time amish
No comments:
Post a Comment