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 11 Factoring Terms in this directory beginning with the letter L.
L
Late Fee
This is the fee charged by the factor for each late period for which an account receivable is outstanding beyond the initial fee period.
Late Fee Period
This is the length of time or any portion thereof for which a late fee is charged. If the initial period is 30 days and the late fee period is 15 days and an accounts receivable goes unpaid for 60 days then the total fee will equal the initial fee plus two late fees.
Liabilities
A financial obligation, debt, claim or potential loss. Usually debt on terms of less than five years is called short-term liabilities, and debt for longer than five years in long-term liabilities.
Lien
A hold or claim that one person or entity has upon the property of another as security for repayment of a debt. When the debt is paid, the lien is removed. Liens may also be granted by courts to satisfy judgments.
Lien Search
Lien Search refers to a search through public records on file in both the County Clerk's and Secretary of State's offices for any claims (pledges) against the property of a business (such as their accounts receivable) or an individual.
Limited Liability Company
A form of business structure designed to combine the best of corporate and partnership attributes into one entity.
Line of Credit
Line of Credit is the amount of credit that may be extended to a borrower by a lender. This type of arrangement gives a borrower more flexibility in planning for operating expenses.
Liquidity
Liquidity is a company’s ability to meet current obligations with cash or other assets that can be quickly converted to cash. Liquidity is one of the most important characteristics of a good market. Liquidity also refers to how easily investors can convert their securities into cash and refers to a corporation's cash position, i.e. how much the value of current assets exceed current liabilities.
