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Finance & Funding Jargon Buster
8 June 2022, 3:43 pm
 Posted in: Finance
You can’t know what you don’t know, especially when it’s wrapped up in abbreviations and buzzwords. Start.Biz are decoding the most commonly used jargon words when looking for business finance or a funding.
P&L 
Profit and Loss Account – a record of Income and Expenditure within a given 12-month financial period to ultimately determine profitability.
Balance Sheet 
A snapshot of the Assets and Liabilities owned/owed by a business at any particular moment in time i.e. Cash Balance or Value of Outstanding Loans. The value between the Assets owned by a Company after deducting the Liabilities it holds equates to its Net Assets.
Cash Flow Statement 
A log of monthly cash inflows/outflows often using a combination of retrospective and forecast information. For a small business, this is probably the key document to managing cash flow.
Working Capital 
This represents a measure of liquidity on a day-to-day basis within a business and is calculated after deducting liabilities such as supplier invoices/debt/PAYE/VAT from assets such as cash/customers invoices/stock.
MI 
Management Information – lenders often require Management Information such as Aged Debtor/Receivable reports and Management Accounts.
Statutory Accounts 
Financial year-end accounts as produced by the Directors of a business and filed with Companies House.
Management Accounts 
Monthly record of Management Information usually comprising Profit and Loss Account, Balance Sheet and Cash Flow Statement
Aged Debtors 
A report of amounts owed by your Customers to the business.
Aged Creditors 
A report of amounted owed to Suppliers by the business.
SALIE 
Statement of Assets and Liabilities – a form usually completed when looking to borrow money comprised of i) Personal Assets & Liabilities (owned/owing), ii) Monthly/Annual log of income/expenditure.
If you have any questions about financing your business or would like to discuss your personal circumstances, please contact our expert team today. 
Access to Finance Consultation Line: 0800 069 9090 (freephone) or email finance@start.biz
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