Funds Procurement Information
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TERMINOLOGY

Finance Terms And Expressions

Essential Terminology

JWCC Finance Terminology

Current Assets

Assets that are convertible to cash within one year in the normal course of business. This usually includes cash, accounts receivable, inventory, and prepaid expenses.

Current Liabilities

Obligations that will come due within a year from the current date. These usually include accounts payable, accrued expenses, and the portion of long-term obligations due within one year.

Current Ratio

Current assets divided by current liabilities. This ratio is a measure of a company's ability to meet its financial obligations in a timely manner.

Debt to Equity Ratio

The ratio of total debt to owners' equity, used as a measure of leverage and ability to repay obligations.

Debt to Tangible Equity Ratio

The ratio of total debt to tangible equity, used as a measure of leverage and solvency. Values for this ratio vary from one industry to another. Lower values for the ratio represent a better financial condition.

EBIT

Earnings before interest and taxes.

EBIT/DA

Earnings before interest, taxes, depreciation, and amortization.

Federal Funds Rate

Rates banks charge each other for overnight loans.

Federal Discount Rate

Rate New York Fed charges to member banks.

FIFO

First in First Out

Finance Procurement

Facilitation of funds necessary to finance major projects and investments relevant to clients individual requirements. Specialists in structured finance with over a billion dollars of international funding. Professional, accurate and personable service.

Gross Realisation Value

Gross Realisation Value (GRV) refers to the end value of the project. Lenders will look at both the costs of the project and the gross realisation, and some lenders will lend only a percentage against the gross realisation.

Libor

London Interbank Offered Rates. Average London Eurodollar rates.

Line of Credit

The amount of short-term credit available to a business from banks.

Loan to Value Ratio

The Loan to Value Ratio (LVR) is expressed as a percentage and calculated by taking the amount of the loan, dividing it by the value of the security and then multiplying it by 100.

Medium Term Note - MTN

1. A note that usually matures in five to 10 years.

2. A corporate note continuously offered by a company to investors through a dealer. Investors can choose from differing maturities, ranging from nine months to 30 years.

INVESTOPEDIA EXPLAINS 'Medium Term Note - MTN'

1. Notes range in maturity from one to 10 years. By knowing that a note is medium term, investors have an idea of what its maturity will be when they compare its price to that of other fixed-income securities. All else being equal, the coupon rate on medium-term notes will be higher than those achieved on short-term notes.

2. This type of debt program is used by a company so it can have constant cash flows coming in from its debt issuance; it allows a company to tailor its debt issuance to meet its financing needs. Medium-term notes allow a company to register with the SEC only once, instead of every time for differing maturities.

In finance, a bond is an instrument of indebtedness of the bond issuer to the holders. It is a debt security, under which the issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay them interest (the coupon) and/or to repay the principal at a later date, termed the maturity date.

P&L

Profit & Loss Statement also another term for the income statement.

Prime rate

The rate offered to a bank's better customers.

Treasury bill rates

Treasury bills are short-term debt instruments used by the U.S. Government to finance their debt. Commonly called T-bills they come in denominations of 3 months, 6 months and 1 year. Each T-bill has a corresponding interest rate (i.e. 3-month T-bill rate, 1-year T-bill rate).

Treasury Notes

Intermediate-term debt instruments used by the U.S. Government to finance their debt. They come in denominations of 2 years, 5 years and 10 years.

Treasury Bonds

Long-debt instruments used by the U.S. Government to finance its debt. Treasury bonds come in 30-year denominations.

6 month CD rate

The average rate that you get when you invest in a 6-month CD.

If you require further clarification in relation to our finance terminology, please contact us for further assistance.

J W CAPITAL CORPORATION
Major Finance Specialist

Specialist in procuring finance for larger construction projects locally and around the world in languages and dollar figures most average financial institutions are not familiar with.


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4 Aug 2013

JWCC expands international financing operations to Sri Lanka, China and New Zealand...




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