Knowledge College

Finance is full of jargon. To help de-mystify our industry, we have developed our very own financial Knowledge College.

What is alternative finance?

Alternative Finance is an umbrella term that covers any type of finance that does not come from a mainstream provider. As a result of the 2008 financial crisis, the popularity of alternative finance has increased significantly year on year. Banks have found it...

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What is peer-to-peer lending?

Peer-to-peer lending, often referred to as “crowd-lending”, is the term used to describe online financial matchmakers which pair together borrowers and lenders without the involvement of a traditional financial intermediary. Successful P2P platforms include Funding...

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Factoring v selective invoice finance

SMEs have been hampered by slow paying customers for decades. This problem has seemingly worsened over recent years. Traditional financing methods such as Factoring and Invoice Discounting have been used by those businesses experiencing payment problems for many...

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What is agricultural finance?

Whilst agriculture is a highly successful industry playing a key role in the global economy there does seem to be one important problem that persists throughout the sector: managing the huge peaks and troughs of cashflow. There are an ever increasing number of...

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What is a debenture?

A debenture is a financial instrument used to raise funds, acknowledging a loan to a company. The provisions of the debenture are declared in a document, such as payment, interest and security of payment amongst others. There are 3 main types of debentures: Debentures...

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What is crowdfunding?

Crowdfunding is a form of finance where a wide range of investors (the ‘crowd’) all contribute small amounts of money to fund a project, idea or business. The service is delivered mostly via the internet through online platforms such as CrowdCube, Seedrs or Funding...

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What is an overdraft?

Many of us are familiar with overdrafts as it is one of the few funding options open to both personal and business finance. Although the basic concept remains the same – you are borrowing from your bank once your current account has run out – there are some...

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What is FinTech?

At its core Financial Technology, also known as FinTech, is an industry focused around utilising software to provide financial services in innovative ways. Many startups within the industry were created with the intention of disrupting the financial systems currently...

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What are payment terms?

Payment terms are the rules imposed by suppliers on their customers to ensure that payment for the goods or services provided is received within an agreed time frame. Payment terms range in their length but are generally between 30-60 days. To encourage a customer to...

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What is receivables finance?

Receivables Finance provides a business with access to capital by using their outstanding sales invoices as collateral. Factoring and Invoice Discounting are the most commonly used products in this type of finance. They allow a business to unlock the money they are...

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What is purchase order finance?

Purchase Order Finance is funding advanced to a supplier secured against a confirmed Purchase Order. To qualify for this type of funding the Purchase Order will need to have come from a relatively well established and financially secure customer as the finance company...

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What is supply chain finance?

Supply Chain Finance, also known as reverse factoring, focusses on maximising a healthy cash flow for suppliers when dealing with larger customers, often with extended payment terms. Despite the name, the actual product used is Invoice Finance. This can be either a...

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