In This Section
Foreign Receivables 
In the past, lenders didn't typically lend on foreign receivables because the credit information system in most foreign countries is not as well established as it is in the United States and, as a result, is not as reliable. Also, geographical distances can create the potential for payment problems, particularly for a third party trying to collect. Most importantly, the governing laws of the country in which the account debtor is located may prevent or inhibit collection efforts, and may even deny our legal interest in the receivable (since the UCC is a United States law).
Forced Liquidation Value (FLV)
The estimated amount of money that would be received for an asset if the asset were immediately sold at auction.
Forbearance Agreement
An agreement by a lender to refrain, for a limited period, from exercising rights or remedies against a borrower, other obligor and/or collateral following the occurrence of an event of a default.
Floor Plan Financing
A form of inventory financing for a dealer of consumer or commercial goods. Floor plan finance is an alternative to traditional bulk inventory financing in that the lender finances the dealer’s purchase of specific goods (i.e., on an individual rather than bulk basis), effectively substituting itself for the supplier.
Floating Rate
An interest rate that is adjusted periodically based upon a specific index or benchmark. For example, a floating rate may be tied to an index such as LIBOR (London Interbank Offered Rate).
Fixture
A good that has become permanently attached to real property or so related to realty that it is considered part of such real property.
Fixed Charges
Any type of fixed expense that recurs on a regular basis. For purposes of the fixed charge coverage ratio, fixed charges commonly include interest expense paid in cash, principal payments in respect of indebtedness for borrowed money and all “restricted payments” paid in cash.
Fixed Charge Coverage
A financial ratio that measures a company’s ability to pay its fixed expenses for a period through its earnings for that period.
Fixed Assets
Assets that are purchased for long-term use and are not likely to be converted quickly into cash, such as land, buildings and equipment.
Fiscal Year
A consecutive 12-month period used for accounting purposes. A company may elect a fiscal year that does not correspond to a calendar year.
Finished Goods
A type of inventory consisting of goods that are ready for sale by a borrower to its customers. These goods can range from components ready for assembly into other products (hard drives, brake pads), to complete products ready for sale to end customers (laptops, construction equipment).
Financing Statement Amendment (UCC-3)
A standardized form that is filed in the public records to terminate, assign or amend an existing Financing Statement (UCC-1).
Financing Statement (UCC-1)
A standardized form that is filed in the public records to provide notice of a security interest in certain assets of a debtor. Under the Uniform Commercial Code, the filing of a UCC-1 financing statement is sufficient to perfect a security interest in most (but not all) personal property
FILO (First-In, Last-Out)
A method of inventory valuation and management that assumes goods are sold or used in the reverse order they were purchased. When an item of inventory is sold, the cost of the newest inventory on hand is deemed the cost of goods sold.
FIFO (First-In, First-Out)
A method of inventory valuation and management that assumes goods are sold or used in the same order they were purchased. When an item of inventory is sold, the cost of the oldest inventory on hand is deemed the cost of goods sold.
Field Examiner
A field examiner conducts field examinations of current and prospective clients in accordance with standard examination procedures to determine the quality, quantity and validity of collateral such as Accounts Receivable and Inventory, as well as the financial condition that supports the collateral.
Field Examination
The field examiner through field work testing and analysis, prepares and issues a field exam report that provides an analysis of Accounts Receivable and Inventory which collateralizes secured lending facilities.
FICA (Form 941)
Form 941 is an important payroll tax form used by employers to report withholding amounts for federal income taxes and FICA taxes (Social Security and Medicare), employer payments for these withholding amounts, and any amounts due to the IRS.
Fee Letter
Fee letter sets out the amounts and terms of various fees due to the agents and initial lenders for underwriting and arranging the financing (including fees to be paid if the deal is not consummated or the borrower does an alternate transaction with other lenders), and administrative agent fees.
Fee Based Appraisal
A Fee Based Appraisal is the most common type of structure on appraisals performed. The "fee" indicates the structure under which the appraisal firm would liquidate the assets.