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Loan Purposes


Accounts Payable (AP)

Money owed by a company to its creditors.

Accounts Receivables (AR)

All monies a business is owed in return for the provision of its services.


The process where one business purchases the shares and assets of another, ultimately taking control of that company.

Advance rate

Expressed as a percentage of the full invoice value, this is the sum that is released by the funder after the client raises an invoice, typically within 24 hours of its issue.

Aged debt report

A report, usually generated from the invoice date, summarising the outstanding balances for each of the client’s debtors over a specific period.

Annual Return

An annual return is a picture of a business's present signed up information on the Annual Return day. An Annual Return ought to not be confused with a firm's yearly account.


An apostille is an international certification affixed either to the original legal document or to a notarized copy of the original legal document that allows to confirm the authenticity the signature, capacity and seal of the said document’s emitter. It is obtained and used in the countries part to the Hague Convention Abolishing the Requirement of Legalization for Foreign Public Documents (“Hague Apostille Convention”). It eases the acceptance by authorities or regulated operators like banks of documents originating from another member State. For the full list of countries part of the Hague Apostille Convention, please check the following link :

Apostilles are affixed by competent authorities designated by each member State. For instance, in the United Kingdom (“UK”), the apostille is affixed by the UK Foreign and Commonwealth Office which is also known as the legalization office which can create confusion with the legalization procedure.

Approved debt

The debts the invoice finance company are prepared to fund or purchase.

Asset based lending

A funding solution that releases cash against assets on a business’ balance sheet, including property, plant, machinery, stock and debtors.


Anything that a company owns with a residual monetary value.

Assignment of debt

The mechanism by which the funder obtains the legal rights to collect monies directly from the client’s debtors, from which the funder retains the factoring charge before forwarding the difference to the client.

Associated businesses

Any other business that a company either wholly or partially owns, or has an element of control over.

Availability (of funds)

The amount of cash the client is able to draw each day should they require. This figure is calculated by multiplying the approved debts by the advance rate, minus the amount already drawn plus charges accrued to date.


Balance Sheet

A report that summarizes all of an entity’s assets, liabilities, and equity as of a given point in time.

Balloon Loan

A mortgage that requires a larger than usual one-time payment at the end of the term. This allows lower payments in the years before the balloon payment becomes due.

Balloon Mortgage

A mortgage which does not fully amortize over he term of the note, leaving a balance due at maturity.

Balloon Option

An option contract where the strike price increases by a certain ratio after the price of the underlying asset reaches a predetermined amount.

Balloon Payment

A lump sum payment that is attached to a loan. This payment is typically made at the end of the loan period.

Bank Confirmation Letter (BCL)

A letter confirming that a loan or line of credit has been established with specific financial institution.

Bank Guarantee

A promise from a bank or lending institution that if a borrower defaults on a loan, the bank will cover the loss.

Bilateral Contract

An agreement between two parties that contains a promise by each party to fulfill certain obligations to fulfill it.

Bill of Sale

A document that transfers ownership of a asset from one party to another.

Bills Payable

A document that shows the amount owed for goods or services received on credit.

Blanket Mortgage

A mortgage that is used to fund the purchase of more than one piece of property.

Brick and Mortar

A term used to describe a business that operates in a building rather than virtually or online.

Bridge Financing

A short term loan advanced to cover the period between the termination of one loan and the beginning of another.

Bridge Insurance

Insurance that covers damage to bridges.

Bridge Loan

A short term loan advanced to cover the period between the termination of one loan and the beginning of another.


A person who acts as an agent for others, as in negotiating contracts, purchases, or sales in return for a fee or commission.

Building Permits

Formal approval of building plans by the designated government agency as meeting the requirement of prescribed codes.

Business Asset
A piece of property or equipment purchased for business use.
Business Exit Strategy

The method by which a business owner intends to get out of an investment.

Business Expenses

An expense incurred in the course of business.

Business Guarantee

An agreement in which debts incurred by a business are the responsibility of the business. It shifts the responsibility for debts incurred by the business owner to the business itself.

Business Liability Insurance
Insurance that protects a business in the event of a lawsuit.


Cash flow

A measure of a company’s immediate financial health that is calculated by cash receipts less cash payments over a specific period in time.

Cash flow finance

Any funding solution that is primarily aimed at easing a company’s immediate cash flow.

Commercial property mortgages

A long-term loan typically provided by banks or building societies to provide cash to purchase a commercial property. Repayments on the loan, plus interest, are made at a fixed or variable rate at monthly or quarterly intervals, depending on a company’s individual circumstances.


The percentage of the client’s sales ledger value that is accounted for by its biggest client(s)

Confidential Invoice Discounting (CID)

An invoice finance facility where a funder releases cash against a business’ debtors within 24 hours of the issue of invoices. The confidential aspect does not disclose the use of such a facility from the business’ customers and allows the client to retain control of its sales ledger management


A relationship whereby a business buys and sells products to and from the same customer.

Cost of funds

The interest /discount rate a client will be charged on top of the money they are lent, typically expressed in the amount over the specific lender’s base rate or BoG Reference Rate.

Credit insurance

Trade credit insurance protects businesses from debtor non-payment that could arise from insolvency or protracted default (i.e. non-payment after six months), where the lender assumes the risk and will pay the client a percentage of the sales ledger value in such an event. This can either be provided as a standalone product or incorporated into a non-recourse invoice finance facility, and is subject to designated credit limits

Credit limit

Designated limit assigned by an Insurer. Also, the amount of credit a client is prepared to extend to any of its customers.

Credit management

A term used to describe a company’s management of its accounts receivable

Current account

The account which shows the financial obligation between the invoice financier and a client; this is a total of all prepayments made and all fees accrued on the account less all collections received from the client’s customers.

Current assets

Any assets that are expected to be converted into cash within 12 months of entry onto the balance sheet, including stock and debtors.



Monies owed to a business or organisation in the form of loans, overdrafts and outstanding invoices.

Debt collection

The process of retrieving monies owed. This can either be performed in-house or be outsourced to a specialist debt collection agency or provided as part of an invoice finance facility via the factoring company.

Debt finance

Corporate finance facilities where the client borrows money such as loans, bonds, mortgages or overdraft agreements.

Debtor protection

Debtor protection is incorporated into a non-recourse invoice finance facility, safeguarding the client from debtor non-payment as the funder assumes the risk, subject to designated credit limits. It is similar to credit Insurance, only it is provided by the funder.


The ratio of credit notes issued by the client to invoices. This also accounts for write-offs and reassignments.

Direct lease

A funder purchases an asset on a business’ behalf before leasing it to the client in return for regular payments, plus interest.


Directors are designated to run a business.

Disapproved debts (Disapprovals)

Debts against which a lender will not provide funding for reasons such as they are too old (typically from 90 or120 days, depending on the funder), irrecoverable, disputed by the debtor, or if the debtor is renowned for its bad credit history.

Disclosed discounting

An invoice finance facility where the funder releases capital against debtors within 24 hours of an invoice’s issue, boosting the client’s cash flow. Unlike Confidential Invoice Discounting (CID), the customers are aware of the funder’s involvement. The client retains the collection function in-house.

Discount charge

The sum (equivalent to interest) that is charged on the amount of borrowing. This is usually applied daily and debited monthly.


Economic life

The period within which an asset has an economic value and is efficiently functional.


The value of an ownership interest in property, including shareholders’ equity in their business.

Equity Finance

Equity finance helps businesses to achieve their growth objectives by raising capital from external investors in return for a share of your business.

Export debts

Debts accrued from the sale of goods and services to overseas customers who can be invoiced in either sterling or another currency.


Facility limit

The maximum amount a business’ current account balance can be drawn at any one time. This figure can vary in line with turnover.


An invoice finance facility where a lender releases cash against debtors within 24 hours of an invoice’s issue, freeing up capital to boost the client’s cash flow. The factor further provides a dedicated sales ledger management service to recover the debts on behalf of the client. There is also the additional option of a non-recourse facility that incorporates debtor protection, thus protecting the client from debtor non-payment.

Factoring charge

The service fee charged by a factor that is usually expressed as a percentage of the client’s sales ledger value, although some operate at a fixed annual fee, which is debited monthly.

Factoring company

A lender that releases funding against a business’ accounts receivable while additionally providing a dedicated sales ledger management service.

Fair Market Value

The price at which an asset is sold and bought in the open market.


Corporate funding provided through the purchase of assets in return for a security interest.

Fixed assets

Assets owned by the business that are unlikely to be quickly converted into cash, including property, fixed machinery, fixtures and fittings.

Full service factoring

Also known as non-recourse factoring, this is an invoice finance facility where a lender releases cash against debtors within 24 hours of an invoice’s issue, freeing up capital to boost the client’s cash flow. The factor further provides a dedicated sales ledger management service to recover the debts on behalf of the client, while the facility additionally incorporates debtor protection to protect the client from debtor non-payment.



The value of debts disapproved by the funder, commonly because of disputes, overdue balances, and those invoices that are above the client’s designated funding limit.


An investor is the proprietor of a firm restricted by shares.

Invoice discounting

An invoice finance facility where a lender releases cash against debtors within 24 hours of an invoice’s issue, freeing up capital to boost the client’s cash flow. Unlike factoring however, the client retains control of the sales ledger management. There is also a non-recourse option that incorporates debtor protection to protect against debtor non-payment, as well as a confidential offering to conceal the facility from the client’s customers.

Invoice finance

A funding solution that primarily releases capital against debtors through invoice discounting and factoring to boost the client’s cash flow, but can additionally provide funding against other assets on the balance sheet through asset based lending, including stock, property, plant and machinery.



A funder purchases an asset before leasing it to a business in return for regular payments, plus interest, to help the client purchase an asset without compromising its cash flow.

Lease rate

The payments due to the lessor by the lessee in return for renting an asset, determined by its value, the duration of the lease and the interest to be paid.


The Company who rents an asset from a financier in return for regular payments.


The Company who supplies an asset to a lessee in return for regular payments, and has full ownership and responsibility over its maintenance costs.

Limited Liability Partnership

LLP represents the Limited Liability Partnership that resembles regular company collaboration with the one distinction being that the individual liability of the companions is restricted.


Management Buy-In (MBI)

A new management team assumes control of a company after acquiring its shares or assets.

Management Buy-Out (MBO)

The existing management team assumes control of its parent or non-group company after purchasing its shares or assets.

Master Lease

Via a contractual arrangement, additional assets are able to be leased keeping the same terms and conditions, without having to renegotiate the contract.


The joining of two companies to create a single, larger entity.

Mezzanine finance

Mezzanine finance falls in the middle of two main forms of funding, debt and equity. It is typically used to support specific projects for growth and acquisition. A blend of debt and equity financing, mezzanine is one of the highest-risk forms of borrowing, but offers some of the greatest returns to businesses.


Net working capital

The cash available to a business to spend, calculated by working out its current assets less its current liabilities.

Nominee Director

The nominee director service may be used where a client doesn’t wish to be personally appointed or has to meet local requirements. The name of the director will appear in the corporate documents, in any business contract and sometimes in the jurisdiction's business register.

Upon appointment of a nominee director, a Nominee Service Agreement will be signed between the client and the nominee. It will guarantee the client that the nominee can only act or sign documents upon the client's request and with the client's prior approval. Professional directors introduced by work with the highest level of integrity and confidentiality.

Nominee Shareholder

The nominee shareholder is appointed in order to detain shares on behalf of the owner of the company. The name of the shareholder will appear in the corporate documents, and sometimes in the jurisdiction's business register.

Upon appointment of a nominee shareholder, a Nominee Service Agreement (declaration of trust) will be signed between the client and the nominee. Nominee shareholders introduced by work with the highest level of integrity and confidentiality.

Non-recourse facility

An invoice finance solution which benefits from the addition of debtor protection to shield the company against debtor non-payment through either insolvency or protracted default, subject to designated credit limits.


The notarization is the official fraud-deterrent process conducted by a notary public commissioned by a public authority to help deter fraud. It is often a three-part process that includes vetting, certifying and record-keeping. Notarizations are sometimes referred to as "notarial acts." By notarizing a document by a duly commissioned and impartial notary public, this gives the assurance that a document is authentic, that its signature is genuine, and that its signer acted without duress or intimidation, and intended the terms of the document to be in full force and effect.


Over-advance / Over-payment

Where the funder occasionally releases additional cash, over and above the amount available under the agreed terms, on a discretionary basis and for a short period, ranging from a single day to a few weeks to help the client deal with a period of limited cash flow.


Parenteral Drug (LVP, SVP)

A Parenteral Drug (LVP, SVP) is defined as one intended for injection through the skin or other external boundary tissue, rather than through the alimentary canal, so that active substances they contain are administered, using gravity or force, directly into a blood vessel, organ, tissue, or lesion. They are infused when administered intravenously (IV), or injected when administered intramuscularly (IM), or subcutaneously into the human body. A large volume parenteral (LVP) is a unit dose container of greater than 100ml that is terminally sterilized by heat. Small volume parenteral (SVP) is a "catch-all" for all non-LVP parenterals products except biologicals.


Patents are defined as a set of exclusive rights granted by a state (national government) to an inventor or their assignee for a limited period of time in exchange for a public disclosure of an invention. The procedure for granting patents, the requirements placed on the patentee, and the extent of the exclusive rights vary widely between countries according to national laws and international agreements. Typically, however, a patent application must include one or more claims defining the invention which must be new, non-obvious, and useful or industrially applicable. The exclusive right granted to a patentee in most countries is the right to prevent others from making, using, selling, or distributing the patented invention without permission.

Patient Safety

Patient Safety is a new healthcare discipline that emphasizes the reporting, analysis, and prevention of medical error that often lead to adverse healthcare events. Patient safety has emerged as a distinct healthcare discipline supported by an immature yet developing scientific framework. There is a significant transdisciplinary body of theoretical and research literature that informs the science of patient safety. The resulting patient safety knowledge continually informs improvement efforts such as: applying lessons learned from business and industry, adopting innovative technologies, educating providers and consumers, enhancing error reporting systems, and developing new economic incentives.


Peptides are short polymers of amino acids linked by peptide bonds. They have the same chemical structure as proteins, but are shorter in length. Major classes of peptides are milk peptides, ribosomal peptides, non-ribosomal peptides, peptones and peptide fragments. Peptides have recently received prominence in molecular biology. Inhibitory peptides are also used in clinical research to examine the effects of peptides on the inhibition of cancer proteins and other diseases.

Peripheral Neuropathy

Peripheral Neuropathy is the term for damage to nerves of the peripheral nervous system, which may be caused either by diseases of the nerve or from the side-effects of systemic illness. The four cardinal patterns of peripheral neuropathy are polyneuropathy, mononeuropathy, mononeuritis multiplex and autonomic neuropathy. The most common form is (symmetrical) peripheral polyneuropathy, which mainly affects the feet and legs. The form of neuropathy may be further broken down by cause, or the size of predominant fiber involvement, i.e., large fiber or small fiber peripheral neuropathy. Frequently the cause of a neuropathy cannot be identified and it is designated idiopathic.

Pharma Packaging

Pharma Packaging is a critical parameter to guarantee the quality and preservation of a drug. Any packaging leaks can spoil the product. All Pharma Packaging Systems equipment complies with the latest cGMP requirements and is fully validated including 21CFR Part 11 compliance. All systems are supplied with full documentation including detailed machine manuals, certification, and IQ/OQ packages.

Pharma Production

Pharma Production, or pharmaceutical production, is mainly carried out on a batch basis for a number of reasons. The main reasons are normally linked to the traceability of the product, validation and regulatory issues, but others include the scale of operation, the flexibility of operation required, inventory optimization or even technology development.

Pharma Quality

Pharma Quality, or pharmaceutical quality, is a global concern. Good quality medicines must meet the official standards for strength, quality, purity, packaging, and/or labeling. The lack of reliable drug quality assurance systems in many developing countries often contributes to the devastation of diseases, particularly those that have built up resistance to traditional first-line medicines. Poor quality drugs result in serious health implications including treatment failure, adverse effects, increased morbidity, mortality, development of drug resistance, and wasted resources.

Pharma Resources

Pharma Resources are used by the pharmaceutical companies. Pharmaceutical raw materials comprise substrates or elements that are used for manufacturing different types of drugs. Pharmaceutical excipients and ingredients or raw materials used to manufacture drugs are extracted from different types of sources. These sources could be natural or synthetic. Recently, many of the raw materials previously derived from natural sources are being produced synthetically in part or even bio-technologically. This is so because manufacturing them artificially is economical, safer, and much quicker.

Pharma Sales Force Effectiveness (SFE)

Pharma Sales Force Effectiveness (SFE) is a difficult concept to measure, but doing so can push pharmaceutical companies past today’s hurdles and into increased productivity and sales. With the ever increasing pressure to ensure maximum return on investment, sales force effectiveness (SFE) is becoming a high priority area in the global pharmaceutical industry.

Pharmaceutical Development

Pharmaceutical Development refers to the design of a quality product and its manufacturing process to consistently deliver the intended performance of the product. The information and knowledge gained from pharmaceutical development studies and manufacturing experience provide scientific understanding to support the establishment of the design space, specifications, and manufacturing controls. The design and conduct of pharmaceutical development studies should be consistent with their intended scientific purpose. It should be recognized that the level of knowledge gained, and not the volume of data, provides the basis for science-based submissions and their regulatory evaluation.

Pharmaceutical Manufacturing

Pharmaceutical Manufacturing, or the Pharma Manufacturing industry, develops and produces a variety of medicinal and other health-related products that save the lives of millions of people from various diseases and permits many people suffering from illness to recover to lead productive lives. There are three main types of pharmaceutical companies: large, or mainline, pharmaceutical companies, smaller pharmaceutical companies and generic pharmaceutical companies.

Purchase option

An option following a lease contract that allows the lessee to purchase the asset outright at either its fair market value or a predetermined amount.



A debt that has been returned to the client from its funder.


Matching the balance of the client’s sales ledger to the balance recorded by its invoice finance provider; a process usually undertaken at monthly intervals, to reflect the previous month-end position. Deadlines for this process vary from funder to funder.

Recourse facility

An invoice finance facility that provides access to cash but does not incorporate bad debt protection through credit insurance, potentially leaving the client vulnerable to debtor non-payment through customer insolvency or protracted default.

Recourse period

The period in which a funder will advance monies against an outstanding invoice. This typically ranges from 60-120 days, although it can sometimes cover up to 150 days.

Refactoring fee

A charge issued by some funders (relating to factoring facilities only) to cover the cost of collecting debts that have outstretched the recourse period, usually reflected as a percentage of the outstanding amount. This enables funders to cover their administration cost on overdue accounts, whilst charging a lower cost for those customers who pay quicker and are thus representing the funder and their client alike with a lower level of risk.


Repaying an existing loan using a new loan that is typically on better terms (possibly with a new lender) which may be more effective for the business in the long-term.

Residual value

The value of an asset following a lease period.


Altering the business’ structure through downsizing and reviewing the current funding facilities to meet its financial requirements, or to adapt to changes in the marketplace.


Sale and leaseback

Selling commercial property (can include assets) to a financier who will then lease it back over a fixed period in return for regular payments, plus interest, to release capital to boost the client’s cash flow.

Service fee

The price charged by an invoice finance provider for its services, typically expressed as a percentage of turnover. This will typically be higher through a factoring facility than with an invoice discounting service.


Shares are systems of possession. The portion of possession relies on the variety of shares provided.



The initial process whereby the invoice finance provider uploads its client’s sales ledger information onto their system.

Take-on debts

The sales ledger value that the invoice finance provider will be taking on at the commencement of the facility.

Term sheet

A document showing the final quote.

Trade finance

A funding solution to help businesses overcome the difficulties associated with overseas trading, particularly assisting those that primarily operate in the import and export markets. It provides funding to purchase raw materials and goods from abroad whilst ensuring payment is received for the client’s goods and services, maintaining their healthy cash flow.


A fast, effective and positive change in a company’s performance levels after an intensive care management strategy is employed.



Value Added Tax is included to the online sales of products and also services and is deliberately put on the customer bill. It is normally billed on many company purchases in Ghana; however, it could likewise have an effect on products imported from various other nations.

Venture capital

The cash a venture capitalist injects into a business in return for a proportion of its shares to boost its cash flow, helping it to grow, whilst additionally providing expertise on running it.

Virtual Office

The Virtual Office allows your company to have an address in Accra, Geneva, London or Hong Kong and to receive mail there, which, in some cases, can lend more credibility to your company.


Working capital

The immediate cash a company has available to spend on assets and its day-to-day operations. This is calculated by deducting current liabilities from current assets.

Working capital management

The process of managing a company’s cash flow to ensure its immediate ability to trade isn’t compromised.