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 25 Factoring Terms in this directory beginning with the letter C.
C
Capital Net Worth
Capital Net Worth is the amount by which total assets exceed total liabilities. Also known as shareholder’s equity or book value, capital net worth is what would be left over for shareholders if the company were sold and its debt retired.
Cash Flow
Cash flow is the measurement of cash a company gained or lost during an accounting period and adjusted for any previous accounting for accruals and other non-cash transactions. Since money does not flow in and out at an equal rate, in most businesses, an analysis of cash flow is important, especially of businesses that are cyclical in nature, or subject to external forces.
Cash Flow Industry
The buying, selling, and brokering of privately held debt in the secondary marketplace; the marketplace where businesses and individuals get help managing their cash flow needs.
Cash Flow Instrument
Future payment or series of payments. Also called a debt instrument or income stream.
Cash Flow Transaction
Occurs whenever a funding source pays cash to an individual or business in exchange for an income stream.
Chattel Mortgage
A mortgage on personal property, given to secure a debt. Typically used in the sale of a business. Also called a security agreement.
Client
The client also referred to as the ‘account creditor’ in a factoring relationship is the company that is in need of cash and wants to sell its receivables to the factor.
Collateral
Something of value (land, a home, a car, etc.) that is pledged as security to ensure the payment of a debt. Collateral is promised to a lender until a loan is repaid. If the borrower defaults, the lender has the right, by law, to seize the collateral.
Collectibility
Refers to the funding source's ability to collect future income stream payments once they are purchased.
Commercial Credit Insurance
Commercial Credit Insurance is insurance against large losses from the uncollectability of accounts receivable.
Concentration
Concentration is the amount of one client's accounts receivable due from a single customer. A large concentration for a single customer is considered high risk.
Confidential Invoice Discounting
Confidential Invoice Discounting relates to a company entering into a factoring arrangement whereby the sales ledger function remains fully with the company. All credit control functions are the companies responsibility and not the factors. The factoring relationship is not disclosed to the client's customers. - Factoring terms / Accounts Receivable
Consumer-Based Income Streams
Cash flows in which the party that owes payments is a consumer, a private individual.
Contingency-Based Income Streams
Cash flows in which the recipient is not necessarily legally entitled to receive payments, or in which the amount of the payment is uncertain or contingent upon outside factors.
Corporate Resolution
A corporate resolution is a legal document that will be voted on or has been voted on at a meeting of the board of directors for a corporation. The resolution could be on just about any subject. One common subject, because it is required by banks and securities firms to open accounts, is to define which individuals are authorized to act on behalf of a corporation.
Corporation
A legal entity, chartered by a U.S. state or the federal government, and separate and distinct from the persons who own it. It is regarded by the courts as an artificial person; it may own property, incur debts, sue or be sued.
Corporation By-Laws
Rules governing the internal management of an organization, which in the case of business corporations are drawn up at the time of incorporation.
Credit
The extending of time in relation to when payment is required in return for product or services provided.
Credit Analysis
The process of analyzing the records and financial affairs of a business to determine creditworthiness.
