Like any business, commercial loans and raising capital have their own jargon, and this series of articles will shortly use plain English explanations for some of the most common terms used in “accounting concepts” to give by “income”.
This four-part guide is intended as a practical property tax manager, and therefore it is important to recognize that these are my own “practical” definitions and descriptions, and are not intended to address the technical, or be relied on precisely those.
I did not go into detail listing of a company like everyone goes this way professional consultants have been involved. However, you can “The Practical Guide to Listing” on the London Stock Exchange website, which finds a useful glossary of floating a company on a stock exchange contains
Accounting Concepts. – The basic assumptions that were in the past should always be based on a series of accounts are prudence, accruals concept, historical cost and going concern. Accounting standards have now become a “mark to market approach (see below), now trumps the concept of prudence changed
Provisions concept. – The accounting concept that revenue and costs should be around the time they are belong
acid ratio can be treated using -. ratio to the company’s ability to pay specify its current liabilities from liquid assets (cash and debtors)
-. unwanted items that could negatively affect your credit rating such as mortgage arrears, county court judgments or bankruptcy
AIM. – The Alternative Investment Market, a public UK equity market with lower criteria for obtaining a list as a full IPO
Asset Based Finance – loans to certain classes of assets such as commercial mortgage based on real estate, factoring and invoice discounting on the basis of your debtors book (and sometimes even stock), leasing, hire purchase or mortgage, based on machinery and equipment;.. and often an important element in the financing of buy outs
Asset Based Lenders (ABLS) – creditors, which is generally against the security of a particular class of assets requires lenders to do so, discount stores in a number of types of assets such as an invoice, which is also against the property will give
-. The availability of resources you have available to you (in right put paid) by your factor or invoice discounter
-. benchmarking comparison of your business against other similar companies competing
BIMBO – See Buy-Out
-. block discounting loans against a stream of future rent or contractual income
book value. – The value of assets on the books of the company shown as book values are usually based on the historical cost of the asset, less depreciation, since it was acquired, they often carry little or. no relation to asset management market value
Bootstrapping Create -. The process of running a business have enough cash internally to support its own growth, such as pulling up in the phrase “self by your own bootstraps’
Break Even. – The amount of turnover in the gross profit or contribution sufficient to cover the overhead costs, so that the company neither makes a profit or loss
bridging loan. – A short-term loans are usually to bridge the period before another transaction
can be completed will burn
. Rate – An American term describing the speed with which a company is to (blow) of its cash reserves
Business Angels -. A wealthy person, often a retired businessman who has sold a business that is interested in working for the investment of assets in small or start up companies. Is often an active role in the management of the company will look
Buy out -. The acquisition of an existing established companies from its owner. This may be caused by the existing management (a management buyout or MBO), new cribs from outside the company (a management company in purchasing or MBI), or by a combination of existing and new managers (buy-in / – management buy-out, Bimbo). Where to from venture capitalist buys another portion of this is known as a secondary buy out.
places – See Buy-Out
Capital -. Capital is a term that is often in a number of different but related way is used. Capital essentially a stock of cash that can be invested in assets, but this stock may be made of different elements and calculated in different ways depending on what you are looking to discuss. The capital may therefore include:.
• “Loan Capital”, which is the sum through a loan (also loan generally known) borrowed
• ‘capital’ is the cash by the shareholders at the company’s stock investing.
• A ‘capital account’ is a partner of the share of retained profits of enterprises.
• A “capital asset” is usually a system such as a property or machinery and equipment included for the cash has, or
may belong • A “business capital” of the total funding base of a company, which usually means to put its capital and their long-term debt
How to talk to sure what the point is used when the term is mentioned
( CAPEX) -… The acquisition of property and equipment
loading -. Security is taken by a lender can either be if the lenders give approval for the sale must be of the assets, or floating, where you are free to buy and sell relevant assets (like stocks) on a daily basis
Chinese Walls are -. Internal agreements into a capital company or a firm of professional advisers, where information is not between the various departments avoided to protect the confidentiality and conflict of interest be forwarded
Commercial Finance Broker -. Business loans that arranged for you from suitable Asset Finance Company.
Concentration limit – limiting factor or invoice discounter to the proportion of each debtor of the debtor may be an imposed
contingency -. Allowance in a cash flow projection for unforecast payments
contingent. Liability -. A potential liability of the business, which may occur as a result of some specific case
Contract Hire – See leasing
Contribution -.. See Gross profit
Creditor – person who owes the company money (“payable” in the U.S.)
Creditor days -. A measure of the duration of credit from suppliers of a company incorporated
<. p> Crown Debt – by HM Revenue and Customs for PAYE / NI or VAT
Current assets -. Cash used by the Company as debtor and cash, together with shares, which is intended. sold as part of the company’s normal trading business
Short-term Debt – Any amount paid by you within the next 12 months
Current ratio -. The value of current assets divided by current liabilities. See also acid ratio
Debenture – Technically, a written confirmation of a debt;. But in general usage, the document by which a lender like a bank takes a charge or security. In the U.S., also used to describe a publicly traded debt or bond
Debt -. Money, a company that is not entitled to a share of property or profits has borrowed must be repaid and usually results in a. Interest charges
debtor – the person who owes the company money
debtor days -.. A measure of the amount of credit given to customers of a business
the next article in this Jargon busting guide to business loans and capital raising issues of “debtors ‘finances’ to ‘bankruptcy’.
