FACTOR KING® was established with a few simple goals in mind- combine "Old World Factoring" with "New Age Thinking". Our Mission to provide crucial funding to small and middle tier companies that may or may not have access to adequate bank financing is responsible for our success. Through our leverage of various technologies our systems and procedures provides fast and accurate factoring, simple order processing, and ease of use allowing our clients to focus on building their core business. Client growth is how we measure our own success. Become part of FACTOR KING® today!!
Glossary
Factoring Terms
FACTORING TERMS
There are currently 12 Factoring Terms in this directory beginning with the letter B.
B
B Through D Credit Customers
These end-customers (the individuals buying from your business) have less than perfect to bad credit and usually cannot qualify for their own traditional financing. Also called sub-prime credit customers.
Bad Debt Reserve
A reserve of funds held back by a factor when purchasing invoices to offset its losses in the event of non-payment. Once the reserve reaches a predetermined size sufficient to protect the funding source's investment, part of the reserve is rebated to the client.
Bad Debt/ Charge Back
This is the amount that a factoring company will write off in the event that an account does not pay their invoices. In some factoring relationships the business who sold the invoice is responsible for paying the factoring company back (recourse), while other financial arrangements do not require this re-payment (non-recourse).
Balance Sheet
A financial report that shows what an individual, business, or other entity owns (its assets), what it owes (its liabilities), and the amount of its net worth or equity.
Baloon
The balance of principal that is due and owing in its entirety at a specified point in time, but in any event, less than the time required to fully amortize the debt.
Bankruptcy
Bankruptcy refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start.
Bill of Exchange
Bill of Exchange is an unconditional order in writing, signed by a drawer such as a buyer, and addressed to the drawee, typically a bank, ordering the drawee to pay a stated sum of money to a payee, often a seller, on demand or at a fixed or determinable future time.
