Accounts Receivable: Accounts receivable are a part of a company’s assets that represent the money that customers owe to the company for goods or services received but not yet paid for. In other words,...
Alternative Financing: Alternative financing offers businesses another method to obtain capital without having to turn to a bank for a traditional loan. Business owners can choose from a wide variety of alternative financing options...
Asset-Based Loan (ABL): Asset-based lending deals with the loaning of money that is secured by collateral. In the case of asset-based loans, the collateral is a business’s assets. This includes their accounts receivable, inventory, equipment,...
Balance Sheet: A balance sheet is a financial statement that summarizes a company’s financial position at a specific point in time. It reports on a company’s assets, liabilities, and equity, providing a snapshot of...
CapFlow Funding Group: CapFlow Funding Group, or CapFlow for short, was founded in 2009, based in Rutherford, New Jersey. CapFlow provides lending services to small and medium-sized businesses such as factoring, purchase order financing, account...
Cash Flow Statement: A cash flow statement is a financial report showing a business’s cash inflow and outflow during a specified period of time. It will include cash a company receives from operations, investment sources...
Collections: Collections refers to the process of collecting payments from customers or clients who have outstanding debts or invoices. This process is an essential part of managing a company’s cash flow. Along with...
Compliance: Compliance generally refers to the act of adhering to rules, regulations, laws, policies, or guidelines set by an authority, organization, or governing body. It involves meeting certain standards, requirements, or expectations to...
Credit Card Split Advances: In the realm of business financing, credit card advances have emerged as a popular and flexible option for entrepreneurs seeking quick access to capital. A credit card split advance, similar to a...
Credit Term: Credit terms are an agreement between a seller and a buyer which states the amount of payments a buyer will make and when they will be made. These terms list specific details...
Debt Financing: Debt financing is when a business collects funding for working capital by selling their debt to investors and/or finance companies. This type of financing entails selling any fixed income product such as...
Equity Financing: A company has the option of financing operations by using equity, debt, or both. Equity is the value of a businesses’ assets after deducting liabilities. Essentially, it is cash that is paid...
Factor Rate: A factor rate is a financial tool used to calculate business financing costs, such as invoice factoring or a merchant cash advance. This rate shows interest owed on business financing and is...
Factoring Company: A factoring company, also known as a “factor,” is a financial institution that provides financing to businesses by purchasing their accounts receivable at a discounted rate. In other words, the factor buys...
Freight Factoring: Freight factoring, also referred to as freight bill factoring or trucking factoring, is a financial service tailored specifically for transportation carriers and freight brokers. It serves as a specialized form of factoring....
Invoice Factoring: Invoice factoring is a type of financing where a business sells their account receivables to a factoring company for a discounted value. A business may be able choose to sell some or...
Invoices: An invoice is a document that itemizes a commercial transaction between a seller and a buyer. It is typically used in business-to-business (B2B) transactions and contains detailed information about the goods or...
Lien: A lien is a legal right to keep possession of property, assets, or other collateral if a debt has not been satisfied. Loans or financing terms have contractual obligations that if not...
Liquidity: Liquidity is the ease with which one can convert their assets into cash for quick use. One can determine an asset’s liquidity by considering how easily and quickly it can be exchanged,...
Lockbox: A lockbox system is a bank-operated service offered to companies for the receipt of payments from their customers. Instead of payments made by the customer going to the company, these payments are...
Medical Factoring: Factoring is when a business sells their accounts receivable to a financing company in exchange for immediate working capital. With regards to medical factoring, a financing company advances a certain amount to...
Merchant Cash Advance: A merchant cash advance, also known as an MCA, is an alternative option to a small business loan. An MCA is an agreement made with an alternative financing company or online lender...
Net Advance Amount: Net Advance Amount refers to the remaining sum of money wired to a merchant after deducting certain expenses from the gross funding amount. The calculation involves subtracting closing costs, refi withholding, and...
Non-Recourse Factoring: Non-recourse factoring is one of two options offered to businesses when seeking invoice factoring solutions. Invoice factoring is where a business may sell all or some of their outstanding invoices to a...
Notice of Assignment: In the alternative financing industry, a notice of assignment is a legal document that is used to inform a debtor that their debt has been sold or transferred to a new creditor....
Purchase Order (PO) Financing: Purchase order financing, or PO financing, is a short-term alternative financing solution to meeting customer demand. Businesses may use this funding to purchase more inventory and supplies to fulfill orders. This is...
Reconciliation: Reconciliation, in the context of alternative financing agreements, refers to a contractual provision that allows for temporary adjustments to be made to payment obligations. Based upon changes in revenue or financial performance....
Recourse Factoring: Factoring, or invoice factoring is a financial service where a business sells their account receivables to a factoring company for an advance on payment due for product/service already rendered. The factoring company...
Revenue-Based Financing: Revenue-based financing provides businesses with working capital in exchange for a percentage of their ongoing monthly receivables. The business agrees to pay back the funds advanced over a period of time until...
Reverse Factoring: Reverse Factoring, also known as supply chain financing, is a supplier financing solution where a company finances its receivables through an intermediary. The financial institution acting as the intermediary will pay the...
Revolving Line of Credit: A revolving line of credit provides businesses with access to a predetermined amount of funds that they can borrow and repay repeatedly. It is a flexible form of financing where the borrower...
SBA 7(a) Loan: The U.S Small Business Administration, also known as the SBA, provides multiple types of loans and financing options for small businesses. The SBA was established in 1953 to offer support to those...
Secured Business Loans: For entrepreneurs and business owners, securing financing is often a critical step in achieving growth, expansion, and operational stability. Among the various options available, secured business loans stand out as a popular...
Small Business Loans: Small business loans offer small businesses working capital to expand operations, buy equipment, maintain cash flow during off-seasons, plan for unexpected expenses and more. Several types of small business loans are available...
Termination/Payoff Agreement: A termination or payoff agreement is a contract stating that all parties involved consent to the cancellation of a contract. This agreement usually involves a business and an individual or combination of...
Underwriting: Underwriting is the process of assessing the risk involved in financial or similar transaction to a borrower(s). As well as determining the terms and conditions of the loan or investment, or similar...
Working Capital: Working capital represents a business or individual’s financial assets, their property, or anything that holds benefit or value to an owner. Working capital, also known as net working capital (NWC), and operating...
Zero Balance Letter: A zero-balance letter is a document that confirms that a borrower has paid off a balance in full. Also, that they have no remaining balance owed to a lender or creditor. The...
