Credit Limit

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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…

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Credit Terms

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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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Credit Memo

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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…

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Contract Financing

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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…

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Contra Account

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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,…

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Consignment Sale

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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…

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