Working Capital is a financial metric used to measure a company's operating liquidity or, in other words, its ability to meet every day running costs, paying staff salaries, creditors' invoices etc. The Net Working Capital of a business is calculated by taking its total current assets less its total current liabilities.

This is also referred to as economic life, the period of time during which an asset has economic value and is usable.

A charge for providing the service element of an Invoice Finance product. The fee is typically charged as a percentage of the invoices sold to Lloyds Bank Commercial Finance or may be a fixed fee.

Also called purchase leaseback, a business sells an asset it already owns to a Lessor for fair market value or book written down value (whichever is less) and then leases it back.

An accounting term used to describe that part of a business’s accounting system which records invoices raised to Debtors and their subsequent payment. It also records related transactions such as credit notes, debit notes and other forms of deduction. Typically the sales ledger is presented in an aged format allowing the user to pin-point the age o [..]

A type of credit that does not have a fixed number of payments, in contrast to instalment credit. Invoice Finance is an example of revolving credit used by Clients. Corporate revolving credit facilities are typically used to provide liquidity/working capital for a company's day-to-day operations.

Repayment of an existing loan with the proceeds from a new loan, usually of similar size but on more favourable terms and/or with a new lender. In order to decide whether this is worthwhile, the savings in interest must be weighed against the fees associated with refinancing.

The estimated resale value of the asset at the end of the lease term.

A provision by which a business has the right to purchase the asset at the end of a lease term, either at a predetermined amount or its fair market value.

Where a company’s existing management team are purchasing the company’s shares or assets from a parent company, or non-group company.