What is Negative Cash Flow?
Negative Cash Flow is when cash flow into a business is less than the cash being spent over a specific time period. You will also hear the term Burn Rate being used in startups.
Audio Definition/Pronunciation
OTHER TERMS BEGINNING WITH "N"
- Net Funds Employed (NFE)
The NFE is the balance of outstanding Advances on a Client’s Accounts at any given time. NFE can also refer to a type of pricing factoring companies occasionally offer to clients, whereby the fee charged is based on NFE. However,…
- Non-Notification or Blind Notification
Non-Notification or Blind Notification is a type of factoring agreement that reduces direct communication between a factoring company and the factoring company’s client’s customer. The fact that the company is using a factoring company is typically not known to their…
- Non-Recourse Factoring or Without Recourse Factoring
Non-Recourse Factoring or Factoring Without Recourse is an agreement within a factoring contract where the factor's client does not have to pay back the factoring company if an invoice is not specifically paid due to bankruptcy of the client’s customer…
- Notice of Assignment
The Notice of Assignment is a legally binding notice sent to our client’s customers advising them to redirect payments on all client accounts to ECapital. Under the UCC laws, if a customer pays any other party, they have not relieved…
- Notification
The process of notifying a customer of their obligation to pay ECapital under the terms of a factoring agreement. Typically formalized by the mailing of a Notice of Assignment.
