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Invoice Factoring Glossary by Alpha
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Negative Cash Flow
A situation where revenues are less than expenses. Prolonged negative cash flow can lead to the failure of a business.
Net Working Capital
The difference between a company's current assets and current liabilities.
Non-Notification
An aspect of confidential factoring where the customers are not notified of the client's arrangement with the factor.
Non-Recourse
A type of factoring where the factor assumes complete responsibility for collection of debt. If the debt is not collected due to the financial inability of the customer, the factor assumes the loss.
Note
A written promise to pay a named amount to a particular company or business by a certain date.
Notification
Process whereby the factor lets an account debtor (your client's customer) know that an invoice(s) has been purchased from your client, and that the debtor is to pay the factor directly.
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