Business Finance Glossary

Business Finance | A Glossary of General Commercial Loan Terms

An Overview of General Business Finance Terminology

This glossary of terms may help in understand any business loan contract you may be considering.

Assets
Anything that your company owns that has value from cash, investments, property, equipment or debtor.
Balance Sheet
A snapshot of a company's financial situation covering assets and liabilities at a given moment in time, usually year end.
Cash Flow
A measure of cash being generated by a business after taking into account all income and expenditure.
CCJ
County Court Judgement.
CVA
Company Voluntary Arrangement.
Fixed Costs
All expenses that are incurred independent of the level of output.
Gross Profits
Sales Revenues less the costs of goods or services sold.
IVA
Individual Voluntary Arrangement.
Liabilities
Any item that is potentially owed to some else.
Liquid Assets
Any asset that can be turned into cash quickly.
Net Profits
Total Revenue less Total Expenses.
ROI
Return on Investment.
ROE
Return on Equity.
ROCE
Return on Capital Employed.
RONA
Return on Net Assets.
ROTA
Return on Total Assets.
Variable Costs
Expenses that move up and down with output.
Your Next Move!

Would you like to know more about financing your business? Contact us on-line here or call 01223 211 613

Summary

Here is a list of terms and abbreviations related to commercial finance that you may find useful.

Bookmark and Share