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…
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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…
Written authorization of a loan agreement by the borrower giving the lender a judgment against the borrower in the event there is a default. A Confession of Judgment (COJ) clause…
In finance, collateral refers to assets that a borrower offers to a lender as security for a loan. The purpose of collateral is to reduce the risk assumed by the…
Client Concentration is when a business has only one or a few large customers representing the majority of the business’ revenue. Many banks and factoring companies frown upon client concentration….