A Credit Limit is the maximum amount of credit that a financial institution or lender extends to a borrower, whether an individual or a business. This limit is set by…
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Cross-Aged Accounts refer to a method used by lenders and credit professionals to assess the risk associated with a company’s accounts receivable. This method involves evaluating the aging of receivables,…
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Credit Terms refer to the conditions under which a seller extends credit to a buyer, specifying the payment timeline and any discounts or penalties associated with early or late payment.…
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A Credit Memo, also known as a Credit Memorandum, is a document issued by a seller to a buyer, reducing the amount owed by the buyer under a previously issued…
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Contract Financing is a type of financing arrangement where a business secures funding based on the value of a contract it has with a customer or client. This financing is…
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A Contra Account is an account used in accounting to reduce the value of a related account. It is linked to a specific account and has a balance opposite to…
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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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A Confession of Judgment (COJ) is a legal agreement in which one party (the debtor) agrees in advance to let the other party (the creditor) obtain a court judgment against…
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