Acceleration Clause - Language in a lease that secures
payments for the full term of the lease.
Payable - The amount of money a company owes for goods and
services it has received; any outstanding debt that a company
Receivable - A collection of a company's outstanding invoices
(invoices which have not yet been paid by the company's customers).
Rate - The percentage of the face amount of an invoice that
a factor will advance to a client as funding for a factoring
- The gradual, systematic payment of a debt, such as a mortgage
or other loan, in installments of principal and interest for
a definite time, so that at the end of that time, the debt will
- Anything having commercial or exchange value that is owned
by a business, institution or individual. A business' assets
might include its real estate, equipment inventory, intellectual
assets such as copyrights or trade-marks and accounts receivable.
Sheet - A financial report that shows what an individual,
business or other entity owns (its assets), what it owes (its
liabilities) and the amount of its net worth or equity.
Flow - The flow of cash through a business or household.
In business terms, cash flow involves the flow of cash into
a company in the form of revenues, and out of the company in
the form of expenses.
Flow Instrument - Future payment or series of payments.
Also, called a debt instrument or income stream.
Diligence - The process through which brokers and funding
sources assess the risk and authenticity of a deal. It consists
of the gathering and verification of information and documentation
necessary for the funding source to make an informed decision
as to whether to accept a prospect as a client, thereby reducing
the funding sources overall risk of loss.
- One who organizes, manages, and assumes the risks of a business
- The value or interest an owner has in property over and
above any indebtedness.
- The purchase of a business' accounts receivable at a discount.
- Borrowing funds from a lender, investing those funds in
a debt instrument and giving the lender a security interest
in the debt instrument as the collateral for the loan.
Lenders - Savings and loan associations, local and regional
banks, mortgage companies, finance companies and commercial
Venture - A business entity established for a specific task,
operation or goal.
Capital - Capital invested or available for investment in
the ownership of a new enterprise.