Factoring

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 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.

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.

The legal transfer of a company's right to collect payment from its debtors to a lender or financial institution as security for a loan or as part of a receivables financing arrangement. Assignment may be by way of security (where the receivables serve as collateral) or by way of sale (as in factoring or securitisation).

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 hybrid form of financing that sits between senior debt and equity in the capital structure, typically unsecured or subordinated to senior lenders. Mezzanine debt carries higher interest rates than senior debt (often 12-20%) and frequently includes equity kickers such as warrants or conversion rights.

A financial institution licensed by card networks to issue payment cards (credit, debit, or prepaid) to consumers and businesses. The issuing bank extends credit or provides access to deposited funds, bears the cardholder's credit risk, and receives interchange fees on each transaction.

A financial institution licensed by card networks (Visa, Mastercard) to process payment card transactions on behalf of merchants, also known as a merchant acquirer. The acquiring bank maintains the merchant's account, underwrites the merchant's credit risk, settles funds from card transactions, and ensures compliance with card network rules and PCI DSS security standards.