A/R Finance & Factoring Terms GLossary
What isContra Account
A Contra Account, in terms of A/R financing or Invoice Factoring, is when the Factoring Company’s Client and their Customer (the Account Debtor) each owe the other monies. For example, slotting or advertising fees in retailing. This must be disclosed immediately to the working capital provider so the borrowing base or availability can be adjusted accordingly.
Audio Definition/Pronunciation
OTHER TERMS BEGINNING WITH "C"
- Carried Interest
- Cash Against Documents (CAD)
- Chargebacks (Retailer)
- Client
- Client Concentration
- Collateral
- Confession of Judgment (COJ)
- Consignment Sale
- Contract Financing
- Credit Insurance
- Credit Memo
- Credit Terms
- Cross-Aged Accounts (10% rule)
- Current Assets
- Current Liabilities
- Current Portion of Long-Term Debt (CPLTD)
