Glossary
Capital
Capital is the amount of finance provided for the purpose of acquiring assets for the business.
Capital Expenditure
Capital expenditure is spending on assets of a business that are classed as fixed assets for accounting purposes (such as machinery).
Cash Flow Forecasts
Cash flow forecasts are statements of cash expected to flow into the business and cash expected to flow out over a particular period.
Cash Flow Insolvency
Cash flow insolvency is where an individual or company has assets but they are tied up and cannot be used to pay a debt. An example will be where there is equity in a building, but this cannot be released to pay a debt.
CBILS
The Coronavirus Business Interruption Loan Scheme (CBILS) provides financial support to smaller businesses (SMEs) across the UK that are losing revenue, and seeing their cashflow disrupted, as a result of the COVID-19 outbreak.
Charging Order
When a creditor has a court order against you, they can apply for a charging order that secures the debt against an owned property.
Chattel Assets
Chattel assets are tangible, movable asset (examples are plant and machinery, a painting, a vehicle and goods).
Code of Ethics
The Code of Ethics are the principles and standards set by a regulatory or professional establishment, for members to follow and observe.
Companies House
Companies House is a government section within the Department for Business, Skills and Innovation to deal with the regulation and incorporation of limited liability partnerships and limited companies in the UK.
Company Directors Disqualification Act 1986 (CDDA (1986))
The CDDA 1986 forms part of UK company law and sets out the procedures for company directors to be disqualified in certain cases of misconduct.
Company Voluntary Arrangement (CVA)
A company voluntary Arrangement is an insolvency procedure where a company has an arrangement with its creditors to pay the debts in the future, which prevents these creditors from taking action against the company now.
Compulsory Liquidation
A compulsory liquidation is a liquidation which follows a winding up order made at Court.
Conflict of Interest
A conflict of interest occurs when a party has competing interests or loyalties because of their duties to more than one person or organization. A person with a conflict of interest can’t do justice to the actual or potentially conflicting interests of both parties.
Contingent Liability
Contingent liabilities are liabilities that may arise at some time in the future, due to a past event (or contract).
Contributory
A contributory, for the purposes of the Insolvency Act 1986, generally includes company members who hold fully paid up shares, as well as those with partly paid shares.
Corporation Tax
Corporation Tax is tax payable to HMRC within 9 months of the company’s accounting year end, based on profits.
Cost of Goods Sold
Cost of Goods Sold (COGS) is an amount that includes the costs associated in getting the produce to its final state, usually consisting of materials and labour.
County Court Judgement (CCJ)
If you do not pay a creditors, they can go to court to obtain a County Court Judgement or CCJ. This is a document recognising your debt and will be in the public domain.
Credit Note
A credit note is issues to specify that a person or company owes you an amount of money. Usually is raised to cancel an invoice.
Credit Rating
Credit Rating is a system that some organisations use to judge how likely an individual or businesses will be given credit by a lender. A score is given, based on recent credit history.
Credit Terms
A supplier agrees credit terms to allow the customer time to pay for the goods or services they have provided.
Creditor
A creditor is an individual or business that is owed money by another person or business.
Creditors Committee
Between 3 and 5 creditors may form a committee, representing the interest of all the creditors, in an insolvency appointment. This is usually formed at a meeting of creditors.
Creditors Meeting
A creditors meeting in the insolvency context, is a meeting of creditors in an insolvency case, usually summoned for resolutions to be passed relating how the insolvency practitioners will act and how they will be remunerated.
Creditors Petition
A creditors petition is a document lodged at Court by a creditor who is owed money, against a debtor and may result in the Court making the debtor bankrupt.
Creditors Voluntary Liquidation (CVL)
A Creditors Voluntary Liquidation is a liquidation (not involving the Court) where the creditors appoint an Insolvency Practitioner to act as liquidator of a company. It is usually instigated by a director after they resolve that the company is insolvent.
Crown Set-Off
Crown set off is HM Revenue and Custom’s ability to allocate monies owed to them against monies they owe to an individual or company.
Current Assets
Current assets are cash, book debts, stocks and other assets that can usually be converted to cash within a year.
Current Liability
Current liabilities are amounts owed to individuals and organisations which are due to be repaid within a year.
