Business Finance Glossary
Clear, commercial definitions for the financial terms and products you need to know.
Products
Bridging Loan
A short-term business loan used to bridge a temporary funding gap, typically secured against property or other high-value assets.
Invoice Discounting
A confidential invoice finance agreement where a business borrows money against its unpaid sales invoices while retaining control of its own credit control and customer debt collection.
Hire Purchase (HP)
An asset finance solution where a business pays for an asset in instalments over an agreed term, taking full ownership of the asset once the final payment is made.
Terms
APR (Annual Percentage Rate)
The total cost of borrowing money over a year, including the standard interest rate plus any mandatory fees or charges.
Personal Guarantee (PG)
A legally binding agreement where a company director agrees to be personally liable for a business debt if the company defaults.