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!!

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Glossary

Factoring Terms

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FACTORING TERMS

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There are currently 13 Factoring Terms in this directory beginning with the letter S.
S
Satisfaction
The discharge of an obligation by paying a party what is due (i.e., the satisfaction of an IRS lien or the satisfaction of a mortgage).
Schedule of Accounts
A document provided to the factor by the client that lists the following information: the date of the client's invoice, account number assigned to the customer by the client, name of the customer to whom the invoice will be sent, invoice number assigned by the client to the customer, amount due for the goods provided to the client, name of the factor, legal name of the client submitting the invoices, total face amount of all the invoices submitted to the factor, and the signature of the person authorized to sign on behalf of and bind the client.
Seasoning
The length of time payments have been made on a note or other debt instrument.
Secondary Market
The marketplace where individuals and businesses can sell privately held income streams to funding sources for cash.
Security
Security is the property given or pledged to ensure the repayment of a debt by a borrower.
Security Interest
An interest in property, other than real estate, which is given as security for a debt or other obligation. A security interest is created by execution of a security agreement and one or more financing statements under the Uniform Commercial Code (UCC-1s), which are then placed on record with the Secretary of State and/or with the county recording office where the property is located.
Seller
The person or company that is holding a debt instrument and wants to sell it.
Servicing
The collection of payments of interest and principal, and trust fund items such as fire insurance, taxes, etc., on a note by the borrower in accordance with the terms of the note. Servicing by the lender also consists of operational procedures covering accounting, bookkeeping, insurance, tax records, loan payment follow-up, delinquent loan follow-up and loan analysis.
Set-Off
An agreement established between the client and his customer, whereby in certain circumstances the customer may be entitled to deduct a portion of the amount otherwise owed the client, in which case the factor may have advanced sums against an invoice that it is unable to recover directly from the customer.
Small Business
Small businesses are considered small when receivables financing is needed from $5,000 to $150,000 monthly.
Sole Proprietorship
A business owned and operated by an individual.
Subordination
The act of a creditor acknowledging in writing that a debt due him or her by a debtor shall be inferior to the debt due another creditor by the same debtor.
Supporting Documentation
This is the document(s) that make invoice(s) accounts receivable ( i.e. proof of delivery, time cards, acceptance signature, etc..) In simple terms, the paperwork that the customer needs to pay the bill.
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