Star Funding Factoring Definitions D-Z
Download as ppt, pdf0 likes301 views
The document outlines key definitions and processes related to factoring and trade finance, including terms such as due diligence, non-recourse factoring, and proof of delivery. It explains how funds are advanced against receivables and the risks involved for both clients and factors. Additionally, it provides a contact for further inquiries regarding their services.
Star Funding Factoring Definitions D-Z
- 1. STAR FUNDING, INC.1 Purchase Order Funding Factoring Letters Of Credit Your Premier Trade Finance Organization Factoring Definitions D-Z
- 2. STAR FUNDING, INC.2 Deduction油油 Some form of reduction of payment from customers against original invoices.
- 3. STAR FUNDING, INC.3 Dilution油 Any reduction of payment against original invoices. Could be in the form of discounts, chargebacks, marketing rebates, and deductions
- 4. STAR FUNDING, INC.4 Due油Diligence油 Review of a client to verify financials, history, and certificate of good standing for your corporation. Some may include audits of business processes and inventory. This determines your eligibility for an accounts receivable factoring program.
- 5. STAR FUNDING, INC.5 Factoring油油 Purchase of accounts receivable without recourse, assuming the risk of inability to pay by customers.
- 6. STAR FUNDING, INC.6 Finished油Goods油 Items that are complete and ready for re- sale.
- 7. STAR FUNDING, INC.7 Guarantee Requires commitment of the client to be personally responsible for damages and losses in the event of default.
- 8. STAR FUNDING, INC.8 Ineligible Receivables Receivables the factor will not lend against.
- 9. STAR FUNDING, INC.9 Invoice A document sent to a customer outlining items sold, terms of payment requested, names and addresses of supplier and customer.
- 10. STAR FUNDING, INC.10 LIBOR London Inter-Bank Offered Rate. Used as a benchmark for pricing commercial loans.
- 11. STAR FUNDING, INC.11 Non-Recourse Factoring The risk of non-payment by Account Debtors is assumed by the factor who is purchasing the receivables. The Factor assumes the responsibility for credit approval based on debtors financial situation and recent payment history.
- 12. STAR FUNDING, INC.12 Pre-Billing Takes place when invoices are sent to customer before goods are shipped or services are rendered.
- 13. STAR FUNDING, INC.13 Proof of Delivery Can be in the form of email confirmation, phone confirmation, signed shipping documents or status updates on merchant portals. Proof of delivery is required for a factor to verify receivables.
- 14. STAR FUNDING, INC.14 Recourse Client(Account Creditor) assumes all risk associated with credit of their customers. The factor does not guarantee the credit of customers. The factor assumes no responsibility and invoices can be charged back at any time.
- 15. STAR FUNDING, INC.15 Reserve The balance of invoice amount not advanced to customer. This amount is held by the factoring company and paid to the client upon receipt of payment from end customer.
- 16. STAR FUNDING, INC.16 Spot Factoring The ability to factor selective invoices with little to no commitment beyond single invoices.
- 17. STAR FUNDING, INC.17 Terms of Sale Time frame and method of payment offered to customers.
- 18. STAR FUNDING, INC.18 Wholesaler Distributor of goods to resellers.
- 19. STAR FUNDING, INC.19 Work In Process Where work still needs to be completed or materials processed in order to create a finished product.
- 20. STAR FUNDING, INC.20 Working Capital Capital or money that is available to cover the daily operating costs of your business. Working capital is often set aside to cover expenses like rent, payroll, utilities, and other miscellaneous expenses.
- 21. WWW.STARFUNDING.COM21 Avi W. Levine Vice President (212) 768-9900 alevine@starfunding.com 237 West 37th Street. New York, NY 10018 CONTACTS