Glossary
Accounts receivable management
This includes debtor bookkeeping, regular credit checks, dunning, and collection services. Accounts receivable management frequently requires a lot of time and personnel costs for a company; taking the responsibility for accounts receivable management is part of the services offered by the factor.
Asset Backed Financing
This type of financing is based on the sale of the receivables of a company. It can be used to improve liquidity as well as providing protection against bad debts.
Asset Backed Securities (ABS)
With asset backed securities (ABS) financing, the receivables packages are sold to an especially created special purpose vehicle (SPV) which refinances the purchased receivables by issuing securities.
Assignment credit
Short-term bank financing secured by assigning receivables to a credit institution. However, credit institutions normally accept domestic receivables only, and with high discounts.
