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.

An online servicing portal only available to Lloyds Bank Invoice Discounting Clients which provides access to their account, Firstcheck credit opinion service, additional products and business advice centres.

A broad term used to denote the management of a Client’s sales ledger by an Invoice Finance company.

The process of allocating cash receipts (payments) against invoices on a sales ledger.

The amount by which Debtor receipts are less than the face value of the invoice, typically expressed as a percentage. Deductions may include credit notes, bad debts, retentions and discounts.

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.