Glossary
Investments that fall outside traditional categories like stocks, bonds, or cash. These can include private equity, venture capital, hedge funds, real estate, and commodities. Binocs offers solutions for various Alt Investors.
An administrative agent is a financial institution or entity appointed to administer and oversee certain aspects of a financial agreement or transaction on behalf of all parties involved. In the context of syndicated loans or other complex financial arrangements, the administrative agent serves as a central point of contact and coordination for the borrower and the syndicate of lenders. It ensures that all parties adhere to their respective obligations and that the transaction proceeds according to the agreed-upon terms.
A set of rules and protocols that allows different software applications to communicate and exchange data with each other. Binocs highlights API integrations to connect their system with others easily.
A type of business financing in which a loan is secured by a company's assets, such as accounts receivable, inventory, or equipment.
A tool that automatically calculates and tracks financial covenants based on data extracted from loan agreements and financial statements, helping to ensure compliance and identify potential breaches.
A type of financing where lenders extend credit based on the borrower's expected future cash flows rather than solely on the collateral they possess.
The process of investigating a business's commercial attractiveness, including its market, competitive landscape, and business model, prior to an investment or acquisition. Binocs offers Commercial Due Diligence as part of its services.
A document prepared by a company (or its advisors) that is looking to sell itself or raise capital, providing detailed information about the business to potential buyers or investors. Binocs leverages CIMs in its due diligence process.
A condition or restriction stipulated in a loan agreement or bond indenture that the borrower must comply with. Examples include maintaining certain financial ratios or refraining from specific actions. (Binocs offers "Auto Covenant Calculator" and "real-time covenant tracking" as part of Portfolio Monitoring)
The ongoing process of tracking a borrower's compliance with the covenants set forth in a loan agreement. Binocs offers real-time covenant tracking.
The risk of loss arising from a borrower's failure to repay a loan or meet contractual obligations.
The process of converting data into a code to prevent unauthorized access. Binocs mentions end-to-end data encryption as a security measure.
A secure location, physical or virtual, where confidential documents relating to a company are stored and can be reviewed by authorized parties, typically during a due diligence process. Binocs utilizes data rooms in its due diligence.
A comprehensive investigation process undertaken by potential investors to assess the viability, risks, and potential of an investment opportunity before committing capital. Binocs offers Deal Due Diligence as a core service.
The initial phase of evaluating potential investment opportunities against a set of predefined criteria to determine if they warrant further, more detailed investigation. Binocs streamlines deal screening with automated scoring.
A form of debt financing where lenders, who are not traditional banks, provide capital directly to companies.
Proactive indicators or alerts that suggest potential future problems or risks, allowing for timely intervention. Binocs provides AI-powered EWS to monitor financial health.
A set of criteria used to evaluate how a company performs as a steward of nature, manages relationships with employees, suppliers, customers, and communities, and employs sound corporate governance.
A tool or system designed to automatically extract, interpret, and analyze data from various financial documents like balance sheets, income statements, and cash flow statements.
An investigation into the financial affairs of a company, typically conducted before an acquisition or investment. This includes analyzing historical and projected financial performance, financial systems, and controls. Binocs offers Financial Due Diligence.
A type of artificial intelligence that can create new content, such as text, images, audio, and synthetic data, based on patterns learned from existing data.
The process of tracking whether a borrower is making their scheduled interest payments on a loan or debt instrument in a timely manner.
Financial institutions that assist companies, governments, and other entities in raising capital through the underwriting and issuance of securities, and also provide advisory services for mergers, acquisitions, and other financial transactions. Binocs mentions assisting Investment Banks.
A document that outlines the rationale for making a particular investment, including the opportunity, risks, financial projections, and due diligence findings.
Entities such as banks, credit unions, and non-bank lenders that provide loans to individuals and businesses. Binocs supports lending institutions.
A table detailing each periodic payment on a loan, showing how much of each payment is allocated to interest and how much to principal, and the outstanding loan balance after each payment.
The consolidation of companies or assets through various types of financial transactions, including mergers, acquisitions, consolidations, tender offers, purchase of assets, and management acquisitions.
Financial institutions that provide lending services but do not hold a traditional banking license. They are often specialized in certain types of loans or industries.
A type of debt instrument issued by companies to raise long-term capital, which cannot be converted into equity shares of the issuing company.
A company in which a private equity firm, venture capital fund, or holding company has invested.
The continuous process of overseeing the investments within a portfolio to assess their performance, identify risks, ensure compliance, and make informed decisions. Binocs offers a Portfolio Monitoring System.
Due diligence activities conducted before a Letter of Intent (LOI) is signed, aimed at quickly assessing the viability of a potential deal.
Debt financing provided by non-bank lenders directly to companies. This asset class includes various forms of lending, such as direct lending, mezzanine debt, and distressed debt.
Investment funds that buy and restructure companies that are not publicly traded.
A type of loan issued by a financial institution that provides the borrower with the flexibility to draw down, repay, and withdraw funds again up to a pre-approved credit limit.
A framework developed by the American Institute of CPAs (AICPA) for managing customer data based on five "trust service principles"—security, availability, processing integrity, confidentiality, and privacy. Binocs is SOC2 Compliant.
A loan from a bank for a specific amount that has a specified repayment schedule and a fixed or floating interest rate.
The process by which financial institutions (like banks, insurers, or investment firms) evaluate the risk and determine the eligibility of a client for a loan, insurance policy, or investment. Binocs supports due diligence and underwriting.
The analytical process of determining the current (or projected) worth of an asset or a company.
A form of private equity financing that is provided by venture capital firms or funds to startups, early-stage, and emerging companies that have been deemed to have high growth potential or which have demonstrated high growth.
A type of debt financing provided to venture capital-backed companies to fund working capital or capital expenses.
