A report that displays a company’s accounts payable (A/P) by the number of days outstanding. This is a key metric to determine financial health and a firm’s ability to meet debt obligations. A/P agings also take partial payments or discounts into account.
Accounts Payable (A/P)
The money that a company owes to its customers for goods or services rendered on credit terms. Accounts Payable is entered as a liability on the buyer’s Balance Sheet.
Accounts Receivable (A/R)
The money that a company is owed by its customers for goods or services rendered on credit terms. Accounts Receivable is entered as an asset on the seller’s Balance Sheet.
Accounts Receivable (A/R) Turnover Ratio
Also called Debtor’s Turnover Ratio – this is a measure of the effectiveness of a company’s ability to collect on its owed debts.
The funds that a factoring company sends to the client when their invoices are purchased.
The percentage of each purchased invoice’s gross amount that will be advanced to the client. Advance rates can be as high as 95%.
Apply Cash (AC)
An accounting transaction used to withdrwa funds from any Unapplied Cash (UC) balances stored on the account and apply against open invoices.
Apply Reserve (AR)
An accounting transaction used to withdraw funds from a client’s Earned Reserve Balance to apply to open invoices.
Anything of value that a company or individual owns, such as cash, property, or investments.
Asset Based Lending (ABL)
This type of financial lending allows borrowers to leverage their assets without diluting equity in the company. This allows for increased financial flexibility through working capital without changing the ownership structure.