Return on Assets (ROA) is a financial ratio that measures how effectively a company uses its assets to generate profit. It calculates the net income produced per dollar of assets…
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Insolvency is a financial state where an individual or company is unable to meet its debt obligations as they come due. Insolvency occurs when liabilities exceed assets, or when cash…
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A Change of Control Covenant is a clause commonly included in debt agreements, loan contracts, or bond indentures that gives lenders or bondholders certain rights if the borrowing company undergoes…
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A Stakeholder is any individual, group, or organization that has an interest in or is affected by the activities, decisions, and outcomes of a business or project. Stakeholders can influence…
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Confidential Invoice Discounting is a form of invoice finance used by businesses in the UK to improve cash flow by unlocking the value tied up in unpaid invoices. This financing…
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The recourse period in financial contexts, particularly in invoice factoring and trade finance, refers to the specific time frame during which a factoring company or lender can demand repayment from…
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Reserves in the context of invoice factoring refer to the portion of the invoice value that the factoring company holds back until the customer pays the invoice in full. This…
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