Star Funding Accounts Receivable Factoring Definitions A-C

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Purchase Order Funding

Factoring

Letters Of Credit

Your Premier Trade Finance Organization

Factoring DefinitionsA-C

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Account Creditor

The business providing goods and services to customers.

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Account Debtor

Customers who are purchasing the goods and services of Account Creditor.

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Accounts Payable

Payments or liabilities of the client to their vendors and suppliers.

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Account Receivable

Payments owed to a business from it’s customers.

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Accounts Receivable Verification

The process of determining eligibility of the receivables. This is done through phone

calls to the customer, retrieving info from an online portal, or some factors accept

shipping docs and tracking numbers as verification of delivery and receivables.

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Receivables Aging Report

Report showing how long accounts receivable have remained outstanding and

total amounts owed by customers.

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Approved Account

Accounts where factor has checked and approved credit, assuming the credit risk of

non payment.

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Cash Flow

The movement of money throughout your business and in and out of your business.

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Chargeback

Deductions from original invoice price not paid back to the supplier. Could be due to damaged goods, late shipments, poor sell

through or marketing expenses.

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Client

The company that is selling their receivables to the factor.

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Client Risk Receivables

Those receivables not insured or approved through a non-recourse facility.

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Collateral

Property and other assets pledged to a creditor to secure a loan.

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Collection Days

Allowance for mail delivery time and for the check to clear with no issues prior to

posting to an account.

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Concentration

Occurs when a single customer accounts for a significant percentage of the suppliers

overall business.

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Credit Memo

Used to correct account balance. Often offsets damages, discounted or waived fees and other changes to fees or money owed.

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Customer 

The companies the factored client is selling to.

WWW.STARFUNDING.COM18

Avi W. Levine

Vice President

(212) [email protected]

237 West 37th Street.New York, NY 10018

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