Finance Terms UK

We've put together a hub for all the finance terms you'll need to know for running your business.

Finance Terms Explained 

It's important to understand all the key financial terms when running a business - even the most experienced of us need to be reminded of a definition every now and then! To help, we’ve put together a list of common terms you're likely to come across as an SME and how to understand them for future use.

What does current ratio mean? Back

What is compound interest? Back

What is a profit & loss statement? Back

What is quick ratio? Back

What is fiscal policy? Back

What is debt to equity ratio? Back

What are merchant cash advances? Back

What is a balance sheet? Back

What is a bank statement? Back

What is working capital? Back

What is a business model? Back

What is capital employed? Back

What is gross margin? Back

What is an intangible asset? Back

What is liquidity ratio? Back

What is return on equity? Back

What is a return on investment? Back

What is supply chain management? Back

What is net income? Back

What is opportunity cost? Back

What is pro rata? Back

What is liquidity? Back

What is insolvency? Back

What is gross income? Back

What is the cash conversion cycle? Back

What is working capital management? Back

What is accounts payroll management? Back

What is debt service coverage ratio? Back

What are revolving credit facilities? Back

What is commercial property finance? Back

Head over to our Business Cash Flow glossary for more definitions

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Get in touch

Contact our friendly UK advisors on our freephone

0808 250 0859

8:45 - 17:15 - Monday to Thursday &
8:45 - 16:45 - Friday

Have you thought about Invoice Finance as a cash flow solution for your business?

Invoice finance allows you to release cash quickly from your unpaid invoices.

As your lender, we can release up to 90% of your invoices within 24 hours. On payment of the invoice from your customers, we will then release the final amount minus any fees and charges. There are different types of invoice financing options available to businesses depending on the situation and the level of control they require in collecting unpaid invoices.

Invoice financing options from Novuna Business Cash Flow:

Payroll Finance

  • Payroll or Recruitment finance provides recruitment agencies with a full back office administration system and invoice finance facility to aid cash flow for one simple fee
  • A complete recruitment factoring solution

Are slow invoice payments causing you cash flow funding problems? 

Release up to 90% of the invoice straight away with our invoice finance solutions.

Get in touch

Contact our friendly UK advisors on our freephone

0808 250 0859

8:45 - 17:15 - Monday to Thursday &
8:45 - 16:45 - Friday

How does invoice finance work?

  • You carry out your normal business operations as usual, and invoice your client once goods (or services) have been delivered

  • You forward a copy of your invoices to the lender that’s supplying your invoice finance

  • They forward you a pre-arranged percentage of the invoice’s total value (normally 80-90%)

  • You wait for the client to pay off their invoice (or allow the lender to collect the invoice for you)

  • You settle the account with the finance provider, and pocket the remaining value of the invoice. Minus any fees

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