What is ESG Disclosure? ESG disclosure is a form of public reporting by an organization’s management team about its performance across a variety of Environmental, Social, and Governance (ESG) issues. Collective global efforts toward greater sustainability have created the need for organizations of all sizes to be more transparent about what they’re doing to manage…
What is Accounts Receivable Factoring? Accounts receivable (A/R) factoring, often referred to as invoice discounting, is a type of short-term debt financing used by some business borrowers. The transaction takes place between a business (the borrower) and a lender (often a factoring company as opposed to a traditional commercial bank). Factoring is only available as…
What is an ESG Score? An ESG score is an objective measurement or evaluation of a given company, fund, or security’s performance with respect to Environmental, Social, and Governance (ESG) issues. Specific evaluation criteria vary between the different rating platforms that issue ESG scores; however, they all fall within one (or more) of the E,…
What is SWOT Analysis? SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. A SWOT analysis is a framework to help assess and understand the internal and external forces that may create opportunities or risks for an organization. Strengths and weaknesses are internal factors. They are characteristics of a business that give it a relative advantage…
What is a Real Estate Appraiser? A real estate appraiser is someone that is hired or commissioned to estimate the value of real property. The appraiser must be accredited by any governing bodies within the jurisdiction in question. It’s also a requirement that the real estate appraiser be completely objective and without bias towards any…
What is an Appraisal? An appraisal is best defined as an expert’s estimate of the value of “something.” Within the context of business and finance, that “something” is usually an asset (or a group of assets). Examples of assets that can be appraised include, but are not limited to: Real property (both commercial and residential)…
What is Business Risk? Business risk is a component of total risk. Business risk represents the notion that a firm may experience events or circumstances that create a threat to its ability to continue operating. A firm’s management team is regularly tasked with making decisions about how to grow and operate a business. However, every…
What is a Fixed-Rate Mortgage? A fixed-rate mortgage loan is a type of credit that’s secured by real property; it can be a residential or commercial property. If a mortgage is a fixed-rate mortgage, it means that the borrower (the debtor) and the lender (the creditor) agree to the interest rate ahead of loan disbursement,…
What is Collateral? Collateral is an asset pledged by a borrower, to a lender (or a creditor), as security for a loan. Borrowers generally seek credit in order to purchase things – it could be a house or a car for an individual, or it could be manufacturing equipment, commercial real estate, or even something…
