star funding accounts receivable factoring definitions a-c
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STAR FUNDING, INC.1
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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