Invoice Finance Glossary
The following section details terms which are commonly associated with invoice finance.
If you are looking for a specific term, click one of the following links to go to the relevant section:
A – C | D – F | G – M | N – R | S – Z
Debenture
A charge registered against the assets of a limited company, on behalf on any party owed money by the company.
Debt turn
The average number of days taken by customers to pay invoices.
Disclosure
Notification to customers of a discounting client, that the debt is assigned to the factor.
Discount charge
A charge made relating to the balance outstanding on the clients current account. – In practice this works like an overdraft interest rate. – most factors charge this monthly in arrears on the last day of each month and the figure is calculated on the daily outstanding cleared balance.
Factoring
Factoring is the process of selling your unpaid invoices for cash. A factoring company can advance you up to 90% of the value of your invoices, typically within 24 hours of them being issued. Learn more about invoice factoring.
Factoring agreement
An agreement setting out the terms governing a factoring facility.
FDA
Factors and Discounters Association
Funding Limits
Factors often limit the amount they will fund against individual debtor balances. This figure may be determined as a percentage of total debt or a specified sum. The figure usually relates to the credit status of the debtor and or the credit limit set by a credit insurer.
Funds in Use
The balance, including charges, which is owed to the factor, under the agreement.
Touch is the UK’s leading independent factoring and invoice discounting broker, helping over 500 businesses explore their financing options every month. Our experts are always on hand to answer any of your questions – 0845 388 9725, or you can compare factoring quotes instantly online >>
Also in this section:
Invoice Factoring Overview
Invoice Discounting Overview
Who is suitable to use invoice finance?
Invoice finance vs. business overdrafts
Factoring and invoice discounting buying guide
Invoice finance glossary of terms
