OTHER TERMS BEGINNING WITH "A"

• A/P or Accounts Payable Aging

  A periodic report that categorizes a company's accounts payable according to the length of time an unpaid invoice has been outstanding. Similar to accounts receivable aging, it is a critical management tool as well as an analytic tool that helps…

• A/R or Accounts Receivable Aging

  A periodic report that categorizes a company's accounts receivable according to the length of time an invoice has been outstanding. Accounts Receivable Aging is a critical management tool as well as an analytic tool that helps determine the financial health…

• ABL Loan

  An Asset-Based Loan (ABL) is a type of asset-based finance where a loan or line of credit is secured by the borrower's assets. Typically, these assets include accounts receivable, inventory, equipment, and sometimes real estate. ABLs are used by companies…

• Account Debtor

  Someone who owes an obligation by virtue of an account, chattel paper, or general intangible.

• Accounting Insolvency

  Accounting insolvency, similar to balance sheet insolvency, is a financial situation where an individual or organization's liabilities (debts and financial obligations) exceed their assets (cash, investments, property, and other resources). In other words, their net worth is negative. This term…

• Accounting Ledger

  An accounting ledger is a book or computer file used to record financial transactions in a systematic and organized manner. It serves as the central repository for all financial information related to a business or organization, providing a detailed record…

• Accounts Payable (A/P)

  Accounts payable (A/P) - The money a company owes its vendors. When one company transacts with another on credit, one will record an entry to accounts payable on their books while the other records an entry to accounts receivable.

• Accounts Payable Financing

  Accounts Payable Financing allows a company to pay its supplier immediately (cash on delivery or COD) without having to use their own working capital. This is also known as trade credit financing. This type of financing gives the company a…

• Accounts Receivable (A/R)

  Accounts Receivable are monies owed to a company by their customers (another business, a government entity or individual) for goods or services sold on terms. Accounts receivable are a Current Asset on a company’s Balance Sheet. In most businesses, the…

• Accounts Receivable Factoring

  Also known as A/R factoring, factoring or general factoring. Factoring designed specifically for trucking companies is referred to as freight factoring.

• Accounts Receivable Financing

  Accounts Receivable Financing is when a company turns its A/R (accounts receivable) into ready cash versus waiting 30, 45 or even 90 days for their monies. Banks and Asset Based Lending (ABL) finance companies offer this short-term business funding based…

• Accounts Receivable Turnover Ratio

  The Accounts Receivable Turnover Ratio is a financial metric that measures the efficiency of a company in managing and collecting its credit sales or accounts receivable (AR). It helps to evaluate how effectively a company is extending credit to its…

• Accounts Receivable Verification

  Accounts Receivable Verification is part of the due diligence process of A/R Factoring. The factoring company will verify the accounts receivable of their client’s customer (the Account Debtor). The factor is verifying that the Account Debtor is happy with the…

• Accrual Accounting

  Accrual accounting is an accounting method that records revenues and expenses when they are earned or incurred, regardless of when cash is exchanged. This contrasts with cash basis accounting, which records transactions only when cash is received or paid.  …

• Accrual vs Cash Basis Accounting

  The accrual basis tends to smooth out a company's earnings versus using a cash basis. However, cash basis accounting can better reflect true cash flow and discount any A/R not paid in full for reasons such as slow-pay, bad debt,…

• Advance

  In finance, an advance refers to a sum of money provided upfront before it's due or earned, often with the expectation of repayment or deduction from a future income source. Advances can serve various purposes across personal and business finance,…

• Advance Rate

  The percentage of the invoice that will be advanced to the client. This rate often varies between 70% and 95% of the gross invoice value.

• After Action Review (AAR)

  A four-step process developed by the US Army and now used by businesses and other organizations. An AAR is a structured review or debriefs process for analyzing what happened, why it happened, and how it can be done better by…

• Agent of Record

  A term used to describe a service whereby the provider acts as a third-party intermediary between a staffing firm or client and one or more independent contractors, administering the back-office functions related to engaging independent contractors, including payroll and government…

• Aging Report

  The accounts receivable aging report is a list by a client by date of any open or unpaid invoices from you to your customers. It is the primary tool to manage the credit you have given to your customers and…

• Airball in Financing

  Airball or sometimes referred to as a financing gap is a portion of a loan that exceeds the amount supported by the underlying collateral and is dependent on support from the company's cash flow or overall value.

• Amortization

  Amortization is an accounting method used to allocate the cost of intangible assets over their estimated useful life. It involves spreading out the cost of acquiring or developing intangible assets over time to match the revenue or economic benefits generated…

• Articles of Incorporation

  Articles of Incorporation or Certificate of Incorporation acts as a charter to establish a new corporation with basic information about the business. The document is filed with the government during the formation of a C corp or S corp. The…

• Asset (Finance)

  In finance, an asset is defined as any resource owned or controlled by a business or individual that is expected to provide future economic benefits. Assets can be tangible, such as buildings, machinery, and inventory, or intangible, like patents, trademarks,…

• Asset Based Lending (ABL)

  Asset-based lending (ABL) is a type of business financing where loans or lines of credit are provided to companies based on the value of their assets. These assets, which serve as collateral for the loan, can include accounts receivable, inventory,…

• Asset Refinancing

  Asset refinancing, also known as asset-based lending or asset-backed financing, is a financial strategy that involves using existing assets as collateral to obtain financing or raise capital. In asset refinancing, the borrower pledges tangible assets, such as real estate, equipment,…

• Asset-based Finance (ABF)

  Asset-based financing (ABF) is a category of financing solutions where a loan, line of credit, or credit is provided to a company based on the value of its assets. Instead of relying primarily on credit scores or cash flow projections,…

• Assignee

  An Assignee is a person, company or entity who has been assigned and receives the transfer of payments, proceeds, property, title or rights as defined in a legal agreement.

• Auto Hauler

  An auto hauler, also known as a car carrier or car transporter, is a specialized type of trailer or truck designed for transporting automobiles from one location to another. These vehicles are commonly used by car manufacturers, dealerships, rental agencies,…

• Automated Clearing House (ACH) & ACH Loans

  Automated Clearing House (ACH) is a financial network allowing a business to electronically collect payments from their customers either in a single transaction or as recurring payments directly from the customer’s checking or savings account. The term ACH has also…