Parfip Glossary

The back office of Parfip performs all tasks of the first administrative level: data processing of incoming leasing contracts or licence agreements (about 40 000 a year), customers care service (call center), all administrative tasks linked to the credit collection and the accountancy.

The balance sheet lists all the assets and resources of a business at a given time.

Depreciation is the accounting recognition of the value loss suffered by an asset due to its detention and use by the company. Depreciation knows distinct phenomena: usury (due to the use of property) and obsolescence (due to technological developments in the industry).

The financial leasing method allows you to benefit from a good and/or from service that you settle in moderate monthly instalments. The leasing client is not the owner of the equipment, but he can use it, upgrade and renew it during the entire contract period. Equity capitals are therefore preserved, the monthly fees appear in as expenses in the income statement and his lending remains undamaged.

Long term financial leasing without a purchase option at the end of the contract period, is not subject to banking regulations.

A financial risk is the risk of losing money due to a financial operation (on a financial asset) or in an economic operation having a financial impact (for instance a sale on credit or on a foreign currency).

An investment is an expenditure that changes permanently the operating cycle of a company. Unlike a cost, it is not diminished by it. Investing means to relinquish on an immediate consumption, in order to increase future revenues.

The net debt / EBITDA ratio, expressed in a number of EBITDA years, shows the company's ability to repay its debt through its operating surplus.

Normally, a ratio superior to 5 years reflects a debt that is larger than what the company produces.

Also called «credit scoring ", this analysing technique intends to diagnose possible upcoming difficulties of companies. Basically it is used to define, after looking into the company’s account, ratios which are advanced indicators of financial difficulties of companies. 

Parfip uses the scoring tool Cyclosia to study every financing request for every country.

Also called «credit scoring ", this analysing technique intends to diagnose possible upcoming difficulties of companies. Basically it is used to define, after looking into the company’s account, ratios which are advanced indicators of financial difficulties of companies. 

Parfip uses the scoring tool Cyclosia to study every financing request for every country.

Also called «credit scoring ", this analysing technique intends to diagnose possible upcoming difficulties of companies. Basically it is used to define, after looking into the company’s account, ratios which are advanced indicators of financial difficulties of companies. 

Parfip uses the scoring tool Cyclosia to study every financing request for every country.

Self-financing, is the decision of a company to grow in full financial autonomy, without any recourse to external funding sources. If this allows to avoid the risk of debt, this decision of Self-financing can become counterproductive in the long run, when it mobilizes too much treasury of the company.

 The creditworthiness is the aptitude of the company to face up its commitments in case of liquidation, which means termination of the company’s activity and selling its assets. A company can therefore be considered insolvent when it owes more than it may possess.