Glossary of Terms
Invoice finance has its own set of key terms that explain how your facility works. This glossary gives clear, simple definitions of the most common terms you’ll see.
Advance Rate
The amount of money that we advance to you the day following receipt of your invoices, expressed as a percentage and is usually up to 90% of the invoice value.
Availability
​This relates to the amount of funding that you have available to use through your invoice finance facility.
Approved Debt
We take the value of the invoices you send to us and reduce it by the level of disapprovals, such as aged invoices, disputes or exceeded credit limits and the amount left is your approved debt.
BACS
A form electronic payment. The initials stand for ‘Bankers Automated Clearing System’.
Assignment
When an invoice is raised and sent to us, it is effectively sold to us, otherwise known as assigned to/assignment. Invoices have to have our assignment stamp applied to them.
CHAPS
A form of payment for same day transactions. It stands for Clearing House Automated Payment System
Concentration Limit
The level, often expressed as a percentage, to which we will fund one single customer of your total approved debt. Can also be referred to as High Involvement.
Debtors
Your customers, who you invoice.
Credit Limit
The funding limit applied by us to each customer and therefore the maximum funding that will be given against that customer
Disapproval
The reason why an invoice has not been funded e.g. due to age, credit limits, contras, disputes etc
Current Account
The total amount of funds paid to you including any charges at any given time.
Disbursement
​A charge made for any service provided which is not covered by the service or discount charges
Discount Charge
This is the fee we charge you for the money you use. It is similar to the interest rate on an overdraft where you only pay for what you use.
High Involvement
The level, often expressed as a percentage, to which we will fund one single customer of your total approved debt. Can also be referred to as Concentration Limit.
Factoring Fee
A charge made for the administration of your sales ledger, collections and the processing of invoices
Invoice Finance
Funding that gives you access to cash tied up in outstanding customer invoices
Funding Limit
This is your borrowing limit agreed at the outset of our agreement. This can be changed during the course of our relationship
Reassignment
If a debt becomes uncollectable for whatever reason e.g. a debtor goes into liquidation, then the debt can be reassigned to you. This means that the debt belongs to you and not us
Sales Ledger
A record of all monies due and received from your customers
Working Capital
The amount of money a business has available to run its day-to-day operations.
Schedules
A listing of all the invoices that are being sent in at any one time showing the customer name, code, amount and date etc.
Invoice Finance
Funding that gives you access to cash tied up in outstanding customer invoices
Verification
Our team will regularly contact your customers ensure goods and services have been delivered and performed to your customer’s satisfaction. This process is known as verification
Reassignment
If a debt becomes uncollectable for whatever reason e.g. a debtor goes into liquidation, then the debt can be reassigned to you. This means that the debt belongs to you and not us
WHY CHOOSE US?
EXPERIENCE YOU CAN RELY ON
We understand the day-to-day pressures businesses face and provide funding solutions designed to keep things running smoothly.
DEDICATED POINT OF CONTACT
You get a real person who knows your business—not a call centre, not generic support. Someone who actually picks up the phone.
SUPPORTS GROWTH, NOT JUST CASHFLOW
As your business grows, your funding can grow with it—helping you take on new opportunities with confidence.