A/R Finance & Factoring Terms GLossary
What isCredit Limit
A credit limit is the maximum amount of money a lender will issue to a business or individual (debtor). The amount issued is based on a variety of factors that evaluate risk and the likelihood the debtor has the ability to repay the debt.
Audio Definition/Pronunciation
OTHER TERMS BEGINNING WITH "C"
- Capital
- Carried Interest
- Cash Against Documents (CAD)
- Cash Flow Projections
- Chargebacks (Retailer)
- Client
- Client Concentration
- Collateral
- Confession of Judgment (COJ)
- Consignment Sale
- Contra Account
- Contract Financing
- Credit Insurance
- Credit Memo
- Credit Terms
- Cross-Aged Accounts (10% rule)
- Current Assets
- Current Liabilities
- Current Portion of Long-Term Debt (CPLTD)
