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.
The Language of Open Account
- Asset Based Lending
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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
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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
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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
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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
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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
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Recourse Factoring is currently by volume the most widespread and common form of domestic factoring. More on Recourse Factoring
- Supply Chain Finance
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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
