The Language of Open Account

The World of Open Account extends not only across geographies and markets, but over products and solutions, together with processes, methods and technologies. Through working around all of these, the Open Account Industry has generated its own language- and it’s one which can appear complex and mysterious.  This resource aims to translate some of these terms and expressions into everyday English. To make it easy to understand, to make it clear and accessible for all.

Asset Based Lending

Asset Based Lending ABL can be thought of as a hybrid form of business funding that sits between open account receivables finance and traditional banking solutions. More on Asset Based Lending

Factoring

A factor or receivables finance provider buys the seller’s invoices and provides immediate payment of part or all the value. More on Factoring

Invoice Discounting

Invoice Discounting is a type of open account sales invoice finance that can be considered as a “stripped-down” version of factoring. More on Invoice Discounting

Non-Recourse Factoring

On a global basis, Non-Recourse Factoring is currently second by volume to Recourse Factoring and mostly offers pretty much the same services, with the important addition of credit default cover. More on Non-Recourse Factoring

Open Account

Open account trading is a way of doing business where the supplier (seller) delivers goods or services to a buyer (debtor) who commits to pay the supplier’s sales invoice at an agreed future date, rather than before or at the time of the transaction. More on Open Account

Recourse Factoring

Recourse Factoring is currently by volume the most widespread and common form of domestic factoring. More on Recourse Factoring

Supply Chain Finance

Supply Chain Finance is a generic term for any form of funding which provides capital support to a user at any stage during the entire supply chain from pre-order to delivery. More on Supply Chain Finance

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