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Glossary of Factoring and Financial Terminology
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Absolute Assignment for Consideration
A technical phrase referring to the transfer of an unlimited interest in property, such as an insurance policy, in exchange for something of value; typically cash or debt instruments.
Abstract
A floating lien. An abstract is a filing that allows an individual or company to place lenders or appropriate concerns on notice that a debt is due but has not been satisfied.
Account
A compilation of all claims, invoices, and payments incurred by a particular debtor for merchandise sold or for services rendered in the ordinary course of business.
Accounts Payable
Amounts owed on an open account to creditors for goods and services.
Accounts Receivable
Claims against debtors for merchandise sold or for services rendered in the ordinary course of business. The debts appear on the books of the seller as receivables and on the books of the purchaser as payables.
Accounts Receivable Aging Report
A business report showing how long accounts receivable from each customer have been outstanding. It indicates the receivables that are current and the amounts outstanding for 30 days, 60 days, and so forth
Accounts Receivable Financing
Obtaining a loan by pledging accounts receivable to a bank or other lending/financing institution as collateral security for the loan.
Accrual Accounting
An accounting method whereby income and expense items are recognized as they are earned or incurred even though they may not have been received or actually paid in cash. The opposite of cash basis accounting.
Advance Factoring
The factor will pay for the accounts receivable in advance of receiving payment from the customer
Advance Format
In international factoring wherein the factor makes cash available to the client immediately after the client has shipped the goods and assigned the sale.
A technical phrase referring to the transfer of an unlimited interest in property, such as an insurance policy, in exchange for something of value; typically cash or debt instruments.
Abstract
A floating lien. An abstract is a filing that allows an individual or company to place lenders or appropriate concerns on notice that a debt is due but has not been satisfied.
Account
A compilation of all claims, invoices, and payments incurred by a particular debtor for merchandise sold or for services rendered in the ordinary course of business.
Accounts Payable
Amounts owed on an open account to creditors for goods and services.
Accounts Receivable
Claims against debtors for merchandise sold or for services rendered in the ordinary course of business. The debts appear on the books of the seller as receivables and on the books of the purchaser as payables.
Accounts Receivable Aging Report
A business report showing how long accounts receivable from each customer have been outstanding. It indicates the receivables that are current and the amounts outstanding for 30 days, 60 days, and so forth
Accounts Receivable Financing
Obtaining a loan by pledging accounts receivable to a bank or other lending/financing institution as collateral security for the loan.
Accrual Accounting
An accounting method whereby income and expense items are recognized as they are earned or incurred even though they may not have been received or actually paid in cash. The opposite of cash basis accounting.
Advance Factoring
The factor will pay for the accounts receivable in advance of receiving payment from the customer
Advance Format
In international factoring wherein the factor makes cash available to the client immediately after the client has shipped the goods and assigned the sale.
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