a promise by a borrower (the issuer) to repay money to an investor (the bondholder) usually with interest (the coupon). The issuer borrows money by selling bonds to bondholders; the issuer receives the money and the bondholder receives a promise from the issuer to repay the debt at a later date, with interest (usually through a written contract).
the actual cash held by an organisation over a given period. A cash flow forecast shows the total expected outflows (payments) and inflows (receipts) over the year, usually on a monthly or quarterly basis. It is an essential tool for understanding where there will be shortages and surpluses of funds during the year and planning for ways to resolve these.
Is a new scheme introduced to help smaller businesses impacted by COVID-19 access repayable finance. Social enterprises and charities can apply online to borrow £2,000 - £50,000. Because of the government guarantee, the loan is interest free for the first 12 months and then subsequently carries a 2.5% interest rate.
Capital usually refers to financial capital or money and in particular the amount of cash and other assets held by an organisation.
the final investor in a fund or a project whose investment secures the other investments and enables the fund or project go ahead
investment in a project or fund alongside and often on the same terms as other investors.
a private financial institution that provides affordable loans and support to businesses, social enterprises and individuals who struggle to get finance from high street banks and loan companies.
refers to withdrawable share capital; a form of share capital unique to co-operative, community and charitable benefit societies. Investors are able to take their money out (subject to any conditions) but the shares are not transferable to another person.
the principal investor in a fund or project whose commitment to invest may give confidence to others to invest.
is a way of raising finance (donations/grant, equity or debt) from a 'crowd' of people - typically using an online platform. Equity or debt raised using crowdfunding is repayable on an agreed basis with the individual investors, usually with interest on top.