Debtor Finance Glossary

Factoring & Invoice Discounting - A Simple Glossary
Accounts Receivables
Your sales ledger i.e. debtor sales invoices.
Assignment
The legal process by which our sales invoices are transferred to your factoring or Invoice Discounting Company giving them the right to receive payment.
Debt
The invoiced amount a debtor owes to a creditor.
Discount Charge
The interest charged by the factor on outstanding liabilities of the client.
Non Recourse
The facility is 100% protected against bad debts.
Overpayments
A facility where the invoice financier agrees to fund in excess of the normal early payment percentage.
Recourse
The facility is not covered against bad debts and remains the liability of the client.
Sales Invoice
An invoice raised by a seller for the provision of goods or services.
Sales Ledger
The accounting structure holding all sales invoice details.
Summary
Here is a list of popular terms and abbreviations covering factoring & invoice discounting that you may find useful.
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Case Studies
An overview of previously completed commercial finance successes! As "commercial loan brokers" we have successfully financed many deals for our business customers in the past, here is just a small list that you may find of interest [more details].