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 I.
I
Income Stream
A future payment or series of payments, or a debt that one party owes to another party. Also known as a debt instrument or cash flow instrument.
Indemnification
Indemnification is a promise to compensate for loss or damage sustained as a result of a stated set of circumstances.
Initial Fee
Also referred to as the ‘discount fee’, is the fee charged by the Factor on each invoice making up an advance. The initial fee is a fixed percent of each invoice for the initial fee period for which each invoice is outstanding.
Initial Fee Period
The length of time for which the initial fee is charged. Although it may vary the length of time corresponds with the terms of the receivable. If the terms are Net 30 days then the Initial Fee Period is 30 days.
Institutional Lenders
Savings and loan associations, local and regional banks, mortgage companies, finance companies, and commercial lenders.
Insurance-Based Income Streams
Cash flows stemming from insurance companies and paid to individuals or businesses.
Intangible Personal Property
Something that has value but is not a tangible asset, for example, a trademark, copyright, patent, or trade secret.
Interest
The rate paid on money that is borrowed, usually stated as percentage rate per year (factoring does not involve charging interest).
Investment-to-Value Ratio
A measure of how secure a creditor's position is and how likely the creditor is to recoup all of his or her money in the event of a foreclosure.
Invoice
Invoice is a legal debt instrument which indicates the amount due from a customer to pay for delivered goods and/or services.
