The A to Z Glossary of Credit KeywordsThere are 166 entries in this glossary.
A ratio which shows total debt as a percentage of shareholders' funds, and aims to measure to what extent the subject is financed by external funds.
Cash on delivery; payment is due upon delivery of the goods.
The general idea behind the word 'capital' is the money you started with or the money you have, but the term is often loosely used so its meaning should always be clarified. Combined with other words it can have a more precise meaning e.g:
Nominal capital: is the amount of money that can be put into a Limited or Unlimited company in the form of shares. For Public companies this is known as a Authorized capital (the term Registered capital is also sometimes used).
|Capital fully employed||
The company's resources are fully extended; shortage of cash. This is one of the terms used by banks when answering status enquiries.
Cash in hand, either petty cash or current accounts at the bank.
Consumer Credit Association.
|CCA (Second Definiton)||
Consumer Credit Act, 1974
An abbreviation for County Court Judgment
Consumer Credit Trade Association
|Certificate of incorporation||
When a new Limited company (or Unlimited company) is being formed and all the formalities complied with to the satisfaction of the Registrar of Companies, he will issue a Certificate of Incorporation which then gives the Company its legal existence.
A form of proceedings to enforce a judgment, which attaches to property, normally land or shares, owned by the debtor. The charging order operates like a mortgage in that it is usually used to secure payment by instalments. Upon default an order for sale may be made.
Security in the form of stocks and shares, deeds of property or other acceptable substitutes which are deposited by a borrower as a guarantee that a loan will be repaid.
|Company number/Company index number/Comp||
When a Limited company is formed it is given a Company Number, individual to itself, which it keeps, even if it changes its name, until it is dissolved. All companies are required by law to show this number on their letter headings.
Interest calculated on the principal sum of a debt, plus any interest that has accrued in previous periods. Each time interest is added, the total becomes the new sum on which subsequent interest is calculated.
|Conditions of sale||
The contractual terms, usually in writing, upon which goods are sold and services supplied. Also known as Terms of Trade and Terms and Conditions.