Tag: Factoring
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Non Recourse Factoring
Treatment of Non Recourse Factoring in the United States Law The following is a short concept of Non Recourse Factoring published by Marco Terry: A form of factoring where the factoring company will absorb any credit losses that result from a customer defaulting on an invoice. The types of […]
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Lockbox
Treatment of Lockbox in the United States Law The following is a short concept of Lockbox published by Marco Terry: A bank treasury management system. It is desgined to receieve payments by mail and deposit them to an account as quickly as possible. Most bank lockbox systems also scan invoices […]
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Advance Rate
Treatment of Advance rate in the United States Law The following is a short concept of Advance rate published by Marco Terry: he percentage of the invoice that will be advanced. On average, most factors advance between 70% and 85% of the gross value of the invoice.
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Accounts Receivable Factoring
Treatment of Accounts Receivable Factoring in the United States Law The following is a short concept of Accounts Receivable Factoring published by Marco Terry: Another term for factoring. See factoring.
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Audit
Treatment of Audit in the United States Law The following is a short concept of Audit published by Marco Terry: A review carried out by to ensure that the conditions of the factoring agreement are being met.
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Export Debt
Treatment of Export Debt in the United States Law The following is a short concept of Export Debt published by Marco Terry: Money that is owed to a client from a customer that is located overseas.
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Disapproval
Treatment of Disapproval in the United States Law The following is a short concept of Disapproval published by Marco Terry: An invoice that is not approved for funding.
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Purchase Order Financing
Treatment of Purchase Order Financing in the United States Law The following is a short concept of Purchase Order Financing published by Marco Terry: A type of funding that finaces the supplier costs associated with a purchase order. This type of funding can only be used when the PO is for […]
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Credit Limits
Treatment of Credit Limits in the United States Law The following is a short concept of Credit Limits published by Marco Terry: The financial limit that the factor places on each of your customers. This is often based on their credit rating and possible concentration issues.
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Verification
Treatment of Verification in the United States Law The following is a short concept of Verification published by Marco Terry: The process where a factoring company verifies the validity an value of a client's invoice with the customer. AVS in the Context of Payments Definition of AVS in […]