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 14 Factoring Terms in this directory beginning with the letter P.
P
Payee
Person or business that has the right to receive a payment or series of payments and is interested in selling that income stream for cash. ( Also called the seller or client.)
Personal Guaranty
A contractual agreement between a funding source and a seller, whereby the seller assumes personal responsibility and liability for the obligations of the income stream.
Pre Ship Invoice
Pre-ship Invoice refers to a legal debt instrument which indicates the amount due from a customer to pay for goods or services which have not yet been delivered. Generally, factors would not purchase pre-ship invoices.
Principal
Principal is a term used for the owner of a privately held business or one of the main parties (buyer or seller) involved in a transaction.
Principal Generally
Principal Generally is a major party to a transaction, acting as either a buyer or seller or the owner of a privately held business.
Privately Held
Owed to a private individual or business rather than to a bank or other financial institution.
Profit and Loss Statement (P&L)
Summary of the revenues, costs and expenses of a company during an account period; also called income statement, operating statement, statement of profit and loss, income and expense statement.
Promissory Note
A written promise to pay a specified amount to a specified party over a certain period of time.
Purchase Order
Purchase order is a contractual agreement with a supplier of goods or services that specifies payment terms, delivery dates, item identification, quantities, freight terms and all other obligations and conditions.
Purchase Order Financing
This refers to the assignment of purchase orders to a third party who then assumes the obligation of billing and collecting. Typically, this form of financing is tied to a specific transaction where the company requires cash to be able to acquire the raw materials to manufacture the goods for which it has received the purchase order. Because the third party assumes both the production risk and the collection risk, this form of financing can be costly.
