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 20 Factoring Terms in this directory beginning with the letter F.
F
Face Amount or Face Value
Face Amount or Face Value is the total amount of an invoice. Face value is the amount that has to be paid to the factor by client's customer, without consideration as to how much was advanced to the client.
Factor
Factor, as a noun is a company engaged in the buying of accounts receivable. Factor, as a verb is the act of buying or selling accounts receivable at a discount.
Factoring
A form of accounts receivable (invoice) financing involving the sale of accounts receivable to a factoring company either with or without recourse. Factoring can be on a notification or non-notification basis. In a notification agreement, the seller's customers will make payment directly to the factor. A credit check is usually made on the seller's customer; so the factor can serve as a credit information resource for the seller.
Factoring Verification
The process that a factoring company enables to verify that products and services were in fact delivered to the company being charged an invoice to prior to purchasing the asset.
Factors Acknowledgment Form
A form sent to the client's customer by the factor, confirming that the client's invoice does exist and that the customer will remit the payment due under that invoice to the factor.
Factors Advance
The money the factor sends to the client up front, after the verification process is complete, and before the factor receives its money from the client's customer. The advance is figured as a percentage of the face value of the factored invoices.
Factors Charge-Back
An amount of money that is owed to the factor and is deducted or Charged-Back from the reserve or availability of the line due to an agreed upon non-payment by debtor clause in the Factors contract.
Factors Client
Refers to the business that is selling its accounts receivable to a factoring agent or organization.
Factors Reserve
A deposit maintained by the factor, to guard against disputes between the client and the customer, and to guard against bad debt losses due to customer non-payment. This is the money retained by the factor when the advance is sent to the client. The Reserve is sent to the client after the customer has paid the factor the money due on the invoice.
Factors Reserve Release
The amount of money released from the Factors Reserve once payment has been received and credited. The Reserve Release may be less any charge-back or fees associated with the services.
Factors Services
Services provided by the factoring agent to the client on behalf of the factoring process, such as credit analysis, credit guarantees and collection management.
Factors Verification
Refers to the process whereby a factor verifies that the goods and services represented as provided and invoiced by the client to the customer, were in fact provided and accepted, and that the customer intends to pay the factor the money due under the invoice. This process is performed and satisfied prior to making the advance payment to the client against the invoiced amount.
Fictitious Name
A legal statement filed when a person uses a name other than his or her own to operate a business.
Foreclosure
A legal proceeding in court to seize property given as security for a debt that is in default.
