A/R Finance & Factoring Terms GLossary
What isCross-Aged Accounts (10% rule)
This amount is deducted when a borrower has a customer with balances over 90 days, and also balances under 90 days. The rule states that when a customer has more than 10% of their total balance aged over 90 days, the remaining balance is also deducted as ineligible. While 10% is the most common cross-age percentage, lenders will sometimes increase the amount to 15% or 20%. The idea behind this ineligible category is that if a customer has not paid their outstanding over 90 days, it is highly unlikely they will pay the current portion (unless in dispute or because of a billing/accounts payable error).
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 Limit
- Credit Memo
- Credit Terms
- Current Assets
- Current Liabilities
- Current Portion of Long-Term Debt (CPLTD)