Finance

Tag: Factoring

  • Mechanics Lien

    Definition of Mechanics LienThis is the meaning of Mechanics Lien published by Marco Terry: A security interest in the legal title of a property by subcontractors and suppliers who have provided labor/products to improve the property.

  • Factoring Company

    Definition of Factoring CompanyThis is the meaning of Factoring Company published by Marco Terry: A company that provides factoring services and purchases accounts receivable.

  • Construction Factoring

    Definition of Construction FactoringThis is the meaning of Construction Factoring published by Marco Terry: A specialized form of factoring that is designed to work with companies in the construction industry, usually construction subcontractors.

  • Credit Protection

    Definition of Credit ProtectionThis is the meaning of Credit Protection published by Marco Terry: A facility that covers the client against the potential loss due to the non payment of an invoice. Often, this protection is provided by a credit insurance policy.

  • Export Debt

    Definition of Export DebtThis is the meaning of Export Debt published by Marco Terry: Money that is owed to a client from a customer that is located overseas.

  • Confidential Factoring

    Definition of Confidential FactoringThis is the meaning of Confidential Factoring published by Marco Terry: A factoring facility where the customer is not notified that the client is factoring their invoices.

  • Factoring Charge

    Definition of Factoring ChargeThis is the meaning of Factoring Charge published by Marco Terry: A charge made to administer your invoices, collect them and process them.

  • Funding Period

    Definition of Funding PeriodThis is the meaning of Funding Period published by Marco Terry: This is the time period that starts when the factor purchases the invoice and finished when the customer pays the invoice in full.

  • Verification

    Definition of VerificationThis is the meaning of Verification published by Marco Terry: The process where a factoring company verifies the validity an value of a client’s invoice with the customer.

  • Account Debtor

    Definition of Account DebtorPlease see customer.

  • Credit Terms

    Definition of Credit TermsThis is the meaning of Credit Terms published by Marco Terry: A type of commercial sale which allows the customer to pay 30 to 60 days after an invoice is submitted. Terms are noted by preceding the number of days to pay with the word “Net” (i.e. Net 30 […]

  • Advance

    Definition of AdvanceThis is the meaning of Advance published by Marco Terry: This is the amount of money that the factoring company advances to your company when they buy the invoice. The advance is often a percentage of the gross value of the invoice and is wired shortly after the invoice is […]

  • Freight Bill Factoring

    Definition of Freight Bill FactoringThis is the meaning of Freight Bill Factoring published by Marco Terry: Also called freight factoring. Is a specialized form of factoring that is offered to transportation carriers and freight brokers.

  • Funding Limit

    Definition of Funding LimitThis is the meaning of Funding Limit published by Marco Terry: This is the maximum amount of money that a factor can provide to your account.

  • Audit

    Definition of AuditThis is the meaning of Audit published by Marco Terry: A review carried out by to ensure that the conditions of the factoring agreement are being met.