Glossary
Factoring
Factoring is a type of debtor finance that enables a company to sell its accounts receivable to a factoring company (or factor), at a discount.
Fair Value
Fair Value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
Fixed Charge
A fixed charge is security taken for a debt over a specified asset. For example, if your company borrows money from the bank, the bank may take a fixed charge on company owned property.
Floating Charge
A floating charge is security taken for a debt over a group of assets that are not individually specified. For example, if your company borrows money from the bank, the bank may take a floating charge over stock, book debt s and work in progress.
Fraudulent Trading
Fraudulent trading is a criminal offence where a company continues its operations with the intent on purposely defrauding its creditors. The maximum penalty is 10 years imprisonment.
Furlough Scheme
To furlough means to “lay off or suspend temporarily”, usually without pay. The Coronavirus Job Retention Scheme – also known as the Furlough scheme, was created by the Government to allow a payment to Furloughed employees, due to the Covid 19 outbreak.
