Assignment of Receivables

A form of receivables financing in which a business sells its outstanding invoices to a third-party factor at a discount in exchange for immediate cash. The factor assumes responsibility for collecting payment from the underlying debtors and bears the credit risk in non-recourse arrangements.

A form of receivables financing in which a business borrows against its outstanding invoices while retaining responsibility for credit control and collections. Unlike factoring, the borrower's customers are typically unaware of the financing arrangement (confidential invoice discounting).

A short-term financing facility designed to provide temporary capital to a company or fund until permanent financing or the next funding round is secured. In the startup context, bridge loans often carry convertible terms that allow the lender to convert the outstanding balance into equity at a discount to the next round's price, compensating for the higher risk of interim financing.

A public notice filed under the Uniform Commercial Code (primarily UCC-1 financing statements) that establishes a creditor's security interest in a debtor's personal property, including intangible assets such as intellectual property, receivables, and general intangibles. Filing a UCC-1 statement perfects the security interest and establishes priority over subsequent creditors.

A set of technology-based financing solutions that optimise cash flow by enabling suppliers to receive early payment of their invoices at a discount, funded by a financial institution or platform, while the buyer retains its original payment terms. Supply chain finance (also known as reverse factoring) benefits all parties: suppliers improve working capital, buyers extend payment terms without damaging supplier relationships, and financiers earn a return backed by the buyer's credit quality.

A security interest that gives a lender a claim against all of a borrower's assets, both current and future, rather than specific identified collateral. Blanket liens are commonly used in small business lending and working capital facilities where itemising individual assets would be impractical.

A short-term financing arrangement designed to fund a company's day-to-day operational needs, bridging the timing gap between paying suppliers and receiving payment from customers. Working capital facilities typically take the form of revolving credit facilities, overdrafts, or invoice finance arrangements, and are secured against current assets such as receivables and inventory.

The ratio of a loan amount to the appraised value of the underlying collateral, expressed as a percentage. LTV is a primary risk metric used by lenders to assess the adequacy of collateral coverage — a lower LTV indicates greater equity cushion and lower credit risk.