OTHER TERMS BEGINNING WITH "P"

• Paid in Capital

  Paid in Capital represents funds raised by the business from equity (investors & owners), and not from revenue or ongoing operations. It is listed in the Equity Section of the Balance Sheet.

• Partner Buyout Financing

  Partner buyout financing refers to the financial arrangement used to facilitate the buyout of a partner's ownership stake in a business by the remaining partners. This type of financing allows the remaining partners to acquire the shares or ownership interest…

• Past Due Invoice

  A past due invoice is where your customer has not paid your invoice according to the agreed upon credit terms. For example, if your selling terms are net 30 and on the 31st day, your customer has still not paid…

• Pay when Paid Clause

  A Pay when Paid Clause in the vendor agreement requires payment to the subcontractor when the prime contractor gets paid by the project’s owner. A prime contractor's obligation to pay is triggered upon receipt of payment. However, what happens if…

• Payroll Funding

  Payroll funding is the act of selling your accounts receivable for cash up front. Also known as invoice factoring, it is a form of financing specifically designed to help staffing companies make payroll before they collect from their customers.

• Payroll Service Provider

  Provide national, and sometimes international, Payroll Services taking custody of an employer’s payroll cash and assuming responsibility for payroll taxes and remitting net pay to employees.

• Peer Lending

  Peer Lending, or Peer-to-Peer (P2P) Lending, is a practice of lending to individuals or businesses money through online services that match the borrowers with lenders.

• Penetration Rate

  Used in relation to temporary staffing, the term ‘Penetration Rate’ is the proportion of people working on a temporary basis through staffing firms compared to total people in employment. In most developed staffing markets, the penetration rate is normally between…

• Per Diem

  A Latin phrase that literally translates to “by the day” but is used to denote daily living expenses paid to technical, travel nurses, or other skilled temporary or contract employees while they are employed at a distant location requiring housing…

• Perishable Agricultural Commodities Act (PACA)

  The Perishable Agricultural Commodities Act (PACA) protects businesses dealing in fresh and frozen fruits and vegetables by establishing and enforcing a code of fair business practices and by helping companies resolve business disputes. The Agricultural Marketing Service (AMS) is responsible…

• Personal Guarantee

  A Personal Guarantee is an agreement signifying an individual, organization or a company accepts responsibility for a 3rd party debt in the event the debtor fails to pay.

• Pledge Asset Lending

  Pledge asset lending, also known as asset-backed lending or collateralized lending is a type of lending that involves borrowers offering specific assets, typically high-value assets such as securities, stocks, bonds, or other investment holdings, as collateral to secure a loan…

• Pooling

  A shipping term for the practice of grouping together shipments from multiple shippers into a truckload. This is used to reduce shipping costs.

• Pre-Billing

  Pre-Billing is submitting a request for payment before your product or services have been provided to your customer. If you are pre-billing this should be disclosed to the factoring company immediately.

• Pre-Shipment Financing

  Pre-shipment financing, also known as pre-export financing or pre-shipment credit, is a type of short-term financing provided to exporters to finance the production, manufacturing, or procurement of goods before they are shipped to the buyer. This form of financing is…

• Prepaid Freight

  Freight paid by the shipper to the carrier when merchandise is tendered for shipment. This is non-refundable, even if the merchandise does not arrive at the intended destination.

• Prime Plus Spread (Rate)

  Prime plus spread, also known as prime rate or prime lending rate, refers to the interest rate that banks charge their most creditworthy customers for loans or lines of credit. The prime rate is typically based on the federal funds…

• Prime Rate

  The Prime Rate is the interest rate that commercial banks charge their most credit-worthy customers, which are typically corporations. On December 21,2015 it was 3.5% in the US.

• Principal and Interest (P&I)

  The Principal and Interest (P&I) is combined which represents the total scheduled loan payment amount. Principal (P) is the amount of the original loan still owed to the financial institution along with the interest (I) that is being applied to…

• Priority Payables

  Priority payables refer to the financial obligations and liabilities that an individual or organization must prioritize for payment over other liabilities due to their importance, urgency, or the potential consequences of non-payment. These payables often take precedence over other outstanding…

• Private Carrier

  A company that uses its own fleet to deliver goods. A carrier that does not charge provides transportation service to the firm that owns or leases the vehicles.

• Private Trucking Fleets

  Private trucking fleets serve the needs of their owners and do not typically offer commercial trucking services to other businesses. Private trucking fleets typically perform service and distribution functions.

• Process of Factoring

  The Process of Factoring is: Complete the factoring application and submit with the required documents (A/R aging, sample invoices, Vendor Agreements & Purchase Orders) Receive a written proposal outlining the terms and rates from the Factoring company Sign the proposal…

• Production Finance

  Work in Process or WIP Financing (not to be confused with work in progress, a term used in construction or the building trade) is the portion of your inventory that is being "worked". Because of its unsalable condition, most lenders…

• Promissory Note

  A promissory note is a documented promise to repay borrowed money. Promissory notes are binding legal documents used to protect both the lender and the borrower. The promissory note is paper evidence of the debt that the borrower has incurred.

• Proof of Delivery (POD)

  Proof of delivery (POD) is a documentation or process used in the logistics and transportation industry to confirm that goods have been successfully delivered to the intended recipient or destination. It serves as evidence that the shipment or delivery has…

• Property, Plant, and Equipment (PP&E)

  The Property, Plant, and Equipment (PP& E) is part of a company’s Balance Sheet representing long-term assets that are crucial for daily operation. PP& E includes a company's property, machinery, office equipment, vehicles, furniture, and fixtures, less any depreciation or…

• Purchase Ledger

  A purchase ledger, also known as a creditors ledger or accounts payable ledger, is a subledger within the accounting system that records all purchases made by a business on credit. It serves as a detailed record of all amounts owed…

• Purchase Order

  A Purchase Order (PO) is a commercial document issued by a buyer to a seller, indicating types, quantities, quality, timeliness and agreed to price for products or services the seller will provide to the buyer. Sending a PO to a…

• Purchase Order Funding or PO Financing

  Purchase Order Financing is a funding option for businesses that need cash to fill single or multiple customer orders. In many businesses, cash flow problems exist and there will be times when there are not enough monies available to cover…