LDF Glossary

Accounts Payable – money owed by a business to its suppliers 
– purchase of most, if not all, of the target company’s ownership stakes to take control of the target firm
Aged Debt – a debt overdue by at least one or more given periods, usually increments of 30 days
Asset Finance – a loan used to obtain equipment

Capital Expenditure (CAPEX) – funds used by a company to acquire or upgrade physical assets such as property, industrial buildings or equipment
Case Funding – (same as disbursement overview)
Cash Conversion Cycle (CCC) – a cash flow metric that expresses the length of time (in days) that it takes a company to convert resource inputs into cash flow
Cash Flow – incomings and outgoings of cash, representing the operating activities of an organization, project or financial product
Contract Hire – a vehicle operating lease used by a business over a fixed term
Commercial Loan – often referred to as a Business Loan, a Commercial Loan is typically a short to medium term facility used to provide additional working capital
Corporate Finance – financial activities related to running a business
Corporation Tax – a tax on the taxable profits of limited companies and some organisations
CPD – Continuing Professional Development – a process of documenting skills, knowledge and experience obtained from professional working

Days Payable Outstanding (DPO) – DPO indicates how long it takes a company to pay its invoices from trade creditors
Days Sales Outstanding (DSO) – the average number of days a business takes to collect revenue after a sale has been mad
Debtor Funding – a flexible line of credit against receivables or unpaid invoices, based on the creditworthiness of the customers

Finance Lease – a commercial arrangement where the customer/borrower selects an asset and the finance company purchases it
Fixed Share Partners – salaried partners
Fleet Finance – Funding for motor vehicles owned or leased by a company which are used in its normal operations

Hire Purchase (HP) – buying goods by making installment payments over a period of time

Lessee – the company or individual who is receiving the finance
Lessor – the Finance Company providing the finance

Introducer – someone who presents another by name to another to establish an acquaintance, in this instance regarding financial services
Interest Free Finance (IFF) – Interest Free Finance is when a customer makes a purchase via a finance agreement and pays no interest on the finance for a fixed period of time

Operational Expenditure (Opex) – an ongoing cost for running a product, business, or system. In contrast to capital expenditures, operating expenses are fully tax-deductible in the year they are made
Operating Lease
– a lease with terms shorter than the useful life of the equipment being leased, without any transfer of ownership rights

Practising Certificate – an official document demonstrating that an individual has the necessary qualifications to work as an accountant or lawyer
Procurement – obtaining or buying goods and services
Professional Indemnity – liability of an individual or business regarding claims made by clients for loss/damage due to negligent advice/services

Referrer – someone who directs one party to another, in this instance regarding the supply of financial services

Tax – a compulsory contribution to state revenue, raised by the government on income and business profits, or added to the cost of some goods, services, and transactions

Unsecured Finance – finance obtained without the use of property as collateral

Working Capital – Indicates a businesses day-to-day financial offerings. It’s defined as current assets minus current liabilities

Vendor – a person/company offering products for sale
VAT – value-added tax; a consumption tax on a product whenever value is added during production/at final sale