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…

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…

Credit terms, terms of credit or invoice terms is an agreement between the buyer and the seller that list the timing, amount and also when the title is transferred on…

A Credit Memo, in terms of goods or services, is issued by a seller in order to reduce the amount that a customer owes from an earlier sales invoice. A…

Contract Financing is the availability of working capital (sometimes called a mobilization draw) prior to the Government payment to a contractor before the acceptance of goods or services by the…

A Contra Account, in terms of A/R financing or Invoice Factoring, is when the Factoring Company’s Client and their Customer (the Account Debtor) each owe the other monies. For example,…

First, a consignment is NOT a sale. It creates an agency relationship between the consignor and the consignee, where the product, goods or produce continues to belong to the consignor…