The sale of a business' invoices to a third party. The third party is charged with processing the invoices, and the business lending the invoices is able to receive loans based on the expected payments on the invoices.
In order to pay off an obligation, a creditor may accept a higher yield investment to relinquish the debt owed.
Replacement of several smaller loans with one large loan. Usually, the new loan has longer payback period, and its monthly installment amount is smaller than the total of the monthly installment amounts of the older (replaced) loans.
That part of a firm's total capital which commonly comprises of loan-capital and short term bank loans such as overdraft.
A duty or obligation to pay money, deliver goods, or render service under an express or implied agreement. One who owes, is a debtor or debitor; one to whom it is owed, is a debtee, creditor, or lender.
A form or letter issued by a seller to advise the amount owed by the buyer. An invoice is a type of debit note. Also called debit memo.
Amount that is owed, for example to a lender or seller. In banking, it is the amount owed by an account holder to the bank when the account is overdrawn.
In double-entry bookkeeping, entry on the left-hand side of an account record. It has the effect of decreasing a capital, liability, or revenue account, or of increasing an asset or expense account. See also credit.
