Business Finance Glossary - O


Off-the-job training usually takes place in a training room with a trainer who teaches new skills or gives information.

Office of Fair Trading (OFT)

The Office of Fair Trading is the government body which ensures that businesses act in line with competition law.

Offshore Banking

Funds based outside the UK.

On-the-job training

On-the-job training takes place in the working environment. It may mean watching someone else or practicing a skill while someone gives you feedback.

Operating profit

Operating profit is calculated by subtracting overheads from gross profit.

Organic growth

Organic growth comes from growth within the business. It might come from increasing sales or doing things more efficiently. Inorganic growth comes from buying other businesses.


The costs of running your business rather than producing your goods or services, eg rent, rates, lighting and heating.


This is when the business borrows from their bank by taking out more money than they have in their account. It is advisable for people to arrange an overdraft facility with their bank, if they think they may overdraw. If the overdraft is not agreed prior to taking out money not in your account you are likely to be subject to charges.

Contact Sterling Capital Reserve regarding you Commercial Finance requirements