Facility – A loan extended by a bank or financial institution to a business in need of operating capital. This may take several forms, from a short-term loan to a line of credit.

Factoring – involves the cash purchase of a business’ sales invoices at a discount, after which, the factoring company collects the invoiced amounts from the business’ customers. Factoring is used where the business requires immediate access to cash.

Fair trading – see ‘Consumer protection’.

Feasibility study – part of an investment decision making process, involves the examination of a particular project or business to assess its probability of operating successfully.

Fidelity guarantee insurance – insurance to cover the risk of losses resulting from the dishonesty of employee/s.

Finance – where money is lent to individuals or corporations for consumption or investment, and interest is charged on the loan.

Financing – where businesses obtain finance, either to start a business or expand operations.

Financial statements – formal reports prepared from accounting records describing the financial position and performance of the business.

Financial year – an accounting period of 12 months. In Australia the financial year spans the period 1 July to 30 June.

Firewall (IT) – security software that prevents unauthorised access to a company’s networks by outside users.

Fixed costs – as opposed to variable costs, expenses that do not change in proportion to the activity of a business, within the relevant period or scale of production. For example, a retailer must pay rent and electricity bills irrespective of sales.

Fixed assets – the land, buildings, vehicles, materials and equipment owned by a business, and which are used to earn revenue rather than being for sale.

Forecast (cashflow/budget) – anticipates likely future business performance, often based on previous performance.

Franchise – a business arrangement in which knowledge, expertise and often a trade mark or trade name is licensed to an operator, generally for an initial fee and a yearly payment.

Franchisee – the purchaser of a franchise licence who operates one or more outlets of the franchise business.

Franchisor – the owner of a franchise licence.

Fusion insurance – covers loss caused by damage to an electric motor by an electric current and is particularly important for refrigerated inventory.

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