Advance
Advance is the percentage of an invoice's face value which IPS
Invoice Payment System pays upon it's assignments.
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Assignment
Assignment is the transfer of ownership and rights of payment of an
invoice to IPS Invoice Payment System.
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Balance Sheet
A Balance Sheet is a financial statement that shows the value of a
business at a particular point in time. The balance sheet consists of two
columns: assets and liabilities, both of which must be equal.
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Bill of Lading
A Bill of Lading is a shipping document providing instructions to
the freight forwarder or shipper. Bill of Lading also indicates who the
seller and the buyer are.
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Bill of Sale
A Bill of Sale is a document used to transfer the title of goods from the
seller to the buyer.
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Break-Even Point
Break-Even Point is the level of sales whereby you are neither making a
profit nor incurring a loss. Break-Even point is a combination of sales
and costs that will yield a no profit, no-loss
situation and is also known as break-even sales.
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Cash Flow
Cash Flow is the measurement of cash a company gained or lost during an
accounting period and adjusted for any previous accounting accruals and
other non-cash transactions. Since money does not flow in and out at an
equal rate in most businesses, an analysis of cash flow is important,
especially for businesses that are cyclical in nature, or subject to
external forces.
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Chargeback
Chargeback basically means that if for any reason the assigned invoice is
not paid within a specified time frame, your company will incur the loss;
the client is ultimately responsible for payment.
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Collateral
Is an asset that is promised or given to a creditor to guarantee the
discharge of an obligation by the debtor. Upon default, the creditor may
seize the asset and sell it to pay off the loan.
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Commercial Credit Insurance
Commercial Credit Insurance is an insurance against losses from the
uncollectible invoice receivable.
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Concentration
Concentration is the amount of client invoices receivable due from a
single customer. A large concentration for a single customer is considered
high risk.
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Credit Analysis
Credit Analysis is the process of analyzing information on companies and
bond issues in order to estimate the ability of the issuer to live up to
its future contractual obligations.
DBT
DBT- or "Days Beyond Terms" - indicates how many days past the due date an
invoice is late.
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Delivery
Evidence POD
Delivery Evidence POD is a document that proves delivery of a shipment.
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Due Dilligence
Due Dilligence is the verification of information and its documentation
given to IPS Invoice Payment System in order to facilitate a decision as
to whether or not a particular invoice should be financed. IPS Invoice
Payment System always wants to be assured that the money already advanced
to
your company will be paid back.
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Electronic
Wire Transfer
Electronic Wire Transfer is the process of transferring money in or out of
a bank account electronically, without the need for the depositor to
physically make a deposit or write a cheque.
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Face Amount
or Face Value
Face Amount or Face Value is the total gross amount of an invoice. Face
Value is the amount that has to be paid to IPS Invoice Payment System by a
client´s customer, without consideration as to how much was advanced to
the client.
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Invoice
Invoice is a legal debt instrument which indicates the amount due from a
customer to pay for delivered goods or services. Invoices may be traded or
sold.
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Invoices Receivable
Invoices receivable is the money that is owed to a company for goods and
services it has provided to customers on credit. The invoices receivable
amount is an asset to the company. Invoices receivable in the books of a
company goes as invoices payable in the book of customers.
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Invoices
Receivable Aging
Invoices receivable aging is a classification process, reported on a
schedule by time intervals ( 30 day increments & current), 30 days, 60
days, 90 days, 90+ days, used to analyze the amount of money owed to a
business by its customers. Invoice receivable aging schedule is used by
credit grantors such as banks or financial institutions, to determine the
probability of collection, as it shows patterns of payment and
delinquency.
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IPS
Invoice Payment System
IPS Invoice Payment System is the process of cash payment of invoices
receivable in exchange for a discount for early payment.
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Liability
Liability is a financial obligation, debt, claim or potential loss.
Usually debt on terms of less than five years is called a short-term
liability anb debt for longer than five years is considered a long term
liability.
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Lien
A Lien is a creditor's claim against property. When the debt is paid, the
lien is removed. Liens may also be granted by courts to satisfy judgments.
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Lien Search
A lien search refers to a search through public records on file in
government offices for any claims (pledges) against the property of a
business ( such as their invoices receivable) or an individual.
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Liquidity
Liquidity is a company's ability to meet current obligations with cash or
other assets that can be quickly converted to cash. Liquidity is one
of the most important characteristics of a good company. Liquidity also
refers to how easily investors can convert their securities into cash and
refers to a corporation's cash position, i.e. how much the value of
current assets exceeds current liability.
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Negative Cash
Flow
Negative Cash Flow refers to a situation where income is less than
expenses. Prolonged negative cash flow can lead to the failure of a
business.
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Notice of Assignment NOA
Notice of Assignment is a process whereby IPS Invoice Payment System lets
the customer of debtor know that an invoice has been sold by the client
and that the customer or debtor is to pay IPS Invoice Payment System
directly.
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Non IPS Payment
Non IPS Payment is a payment received on your behalf for invoices not
assigned to IPS Invoice Payment System.
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Prompt
Payment Discount
When suppliers offer reduction in the amount payable if the invoice is
paid early.
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Personal
Guarantee
A personal guarantee is an agreement in which a/the principal of a
corporation assumes personal liability for the obligations of the
corporation.
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Purchase Order
A purchase order is a contractual agreement with a supplier for goods or
services that specifies quantity or service description, product or
service cost, delivery and payment terms.
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Rebate
A rebate is a return of the unused funds balance by IPS Invoice Payment
System from the free deposit account.
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Reserve or Free Deposit Account
A reserve or fee deposit account is the money set aside to cover invoice
chargebacks, invoice short payments, invoice disputes, fees, and
administrative charges.
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Schedule of
Invoices
A schedule of invoices is a report given to the client by IPS Invoice
Payment System listing information about the invoices that have been
assigned.
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Security
Security is the property given or pledged to ensure the repayment of a
debt by a borrower.
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Transaction
Summary
A transaction summary is an IPS Invoice Payment System form that shows
important aspects of an invoice and includes a payment stub to facilitate
quick payment of the invoice.
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Uncertain
Account Provision
The uncertain account provision is money that is set aside to cover the
negative financial impact of an uncollectable invoice.
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Verification
Verification is a step during the due diligence process in which IPS
Invoice Payment System confirms the validity of an invoice with the
customer.
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