Debtor Finance 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.