The Sunday Mail
Facility — an arrangement such as an account offered by a financial institution to a business (such as a bank account, a short-term loan or overdraft).
Factoring (also known as debtor’s finance and accounts receivable finance) — when a factor company buys a business’s outstanding invoices at a discount. The factor company then chases up the debtors. Factoring is a way to get quick access to cash, but can be quite expensive compared to traditional financing options.
Finance — money used to fund a business or high value purchase.
Financial year — a 12-month period typically from 1 July to 30 June.
Financial statement — a summary of a business’s financial position for a given period. Financial statements can include a profit and loss, balance sheet and cash flow statement.
Fixed asset — a physical asset used in the running of a business.
Fixed cost — a cost that is not part of producing a good or service.
Fixed interest rate — when the interest rate of a loan remains the same for the term of the loan or an agreed timeframe.
Float — when a private company offers shares in the company to the public for the first time. See Initial public offering.
Forecast — a list of future financial transactions. Forecasts help to plan a more accurate budget.
Fringe benefits — non-monetary benefits, such as company cars and mobile phones, included as part of a salary package.
Fully drawn advance — is a long term loan with the option to fix the interest rate for a period. These loans are usually secured and can help fund a new business or equipment.
