A/R Finance & Factoring Terms Glossary
The world of small business Accounts Receivable finance and invoice factoring has its own language with many acronyms and terms. The vocabulary of business and finance can be very challenging! Next time you are in a business meeting, talking to friends or applying for business funding, make sure you know the definitions of these critical financial terms. This glossary of A/R finance and factoring terms, with audio/voice segments, will get you ahead.
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A
- A/P or Accounts Payable Aging
- A/R or Accounts Receivable Aging
- Account Debtor
- Accounts Payable (A/P)
- Accounts Payable Financing
- Accounts Receivable (A/R)
- Accounts Receivable Financing
- Accounts Receivable Verification
- Accrual vs Cash Basis Accounting
- After Action Review (AAR)
- Aging Report
- Appraisal
- Articles of Incorporation
- Ask Paragon Financial
- Asset
- Asset Based Lending (ABL)
- Assignee
- Automated Clearing House (ACH) & ACH Loans
B
- B2B, B2C & B2G Sales
- Bad Credit Business Loans
- Balance Sheet
- Balloon Loan
- Bankruptcy
- Bill & Hold
- Bill of Lading
- Blind Shipment
- Bookkeeping
- Bootstrapping
- Borrowing Base
- Break-Even Point
- Bridge Loans
- Burn Rate
- Business Acquisition
- Business Credit Protection
- Business Credit Report
- Business Credit Score
- Business Line of Credit Requirements
- Business Loan
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
- Cross-Aged Accounts (10% rule)
- Current Assets
- Current Liabilities
- Current Portion of Long-Term Debt (CPLTD)
D
- Days Sales Outstanding (DSO)
- Debt Consolidation
- Debt Financing
- Debt Service Coverage Ratio (DSCR)
- Debtor-in-Possession (DIP)
- Deductions
- Deposit Account Control Agreement (DACA)
- Depreciation
- Depreciation & Amortization
- Dilution
- Directional Boring Financing
- Discount
- Due Diligence
E
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- Employer Identification Number (EIN) Certificate
F
- Factoring
- Factoring Advance
- Factoring Company
- Factoring Discount Fee or Factoring Rate
- Factoring Receivables
- Factoring Reserve
- Federal Acquisition Regulations (FAR)
- Financial Statements
- Financing
- FinTech
- Fixed Interest Rate
- Fraud
- Free on Board (FOB)
G
- Generally Accepted Accounting Principles (GAAP)
- Government Contract Bidding
- Gross Margin & Gross Profit
- Guaranteed Sale
H
I
- Income or Profit & Loss Statement (P&L)
- Incoterms
- Indemnification
- Ineligibles
- Inspection Certificate
- Intercreditor Agreement
- Inventory
- Inventory Financing
- Invoice
- Invoice Factoring
- Invoice Financing
- Invoice Verification Process
- IRS Tax Lien
K
L
- Letter of Comfort or Financial Capability Certification Program
- Letter of Credit (L/C)
- Leveraged Buyout
- LIBOR Rate
- Line Credit Account
- Line of Credit (LOC)
- Lock Box Payment Services
- Long-Term Debt (LTD)
M
- Management Buyout
- MCA ACH Loan Rule of Thumb
- MCA Factor Rate
- Merchant Cash Advance (MCA) or MCA Loan
- Mezzanine Financing
N
- Negative Cash Flow
- Net Funds Employed (NFE)
- Non-Notification or Blind Notification
- Non-Recourse Factoring or Without Recourse Factoring
- Notice of Assignment
- Notification
O
P
- Paid in Capital
- Past Due Invoice
- Pay when Paid Clause
- Peer Lending
- Perishable Agricultural Commodities Act (PACA)
- Personal Guarantee
- Pre-Billing
- Prime Rate
- Principal and Interest (P&I)
- Process of Factoring
- Production Finance
- Proof of Delivery (POD)
- Property, Plant, and Equipment (PP&E)
- Purchase Order
- Purchase Order Funding or PO Financing
Q
R
- Recourse
- Rehypothecation
- Request for Proposal (RFP)
- Retention (Contractors)
- Reverse Factoring or Supply Chain Financing
S
- Small & Medium Enterprise (SME) Financing
- Small Business Financing
- Small Business Loan
- Special Assets Department
- Statement of Work
- Subordination Agreement
T
U
- Unbilled A/R
- Undercapitalization
- Uniform Commercial Code (UCC) Filing
- Upfront Fees
- US Govt Departments
- US Small Business Administration (SBA)
V
W
Z