Knowledge College

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

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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Agricultural Finance Solutions

Agricultural finance finds its way into the market in the case of managing the huge peaks and troughs of cashflow. Whilst Agriculture is a highly successful industry playing a key role in the global economy there does seem to be an important problem that persists...

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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 are declared in a document, such as payment, interest and security of payment amongst others. There are 3 main types of debentures: As a collateral security:...

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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 chains can grow across the globe. UK-based buyers, for example, can gain stock from numerous different suppliers based in countries around the world. In such circumstances, businesses are faced with serious pressure to keep up their working capital, with...

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What is reverse factoring?

Reverse factoring, more commonly known as Supply Chain Finance, takes place when a large company with multiple product lines introduces one or more of its smaller suppliers to a specialist provider of Invoice Finance facilities. The Invoice Finance organisation will...

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