Resources
Glossary
Working-capital and supply chain finance terms, explained plainly.
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2/10 net 30 is a standard trade credit term that offers the buyer a 2% discount on an invoice if payment is made within 10 days, with the full amount due within 30 days if the discount is not taken.
Read the definition → Accounts payable is the total amount a company owes to its suppliers and vendors for goods or services received but not yet paid for.
Read the definition → Accounts receivable is the total amount owed to a company by its customers for goods delivered or services completed but not yet paid for.
Read the definition → Anti-Money Laundering refers to the laws, regulations, and procedures designed to prevent criminals from disguising illegally obtained funds as legitimate income.
Read the definition → Asset-Based Lending is a form of financing where a business secures funding against the value of its assets, such as receivables, inventory, equipment, or real estate, instead of relying solely on its credit history or income.
Read the definition → Banking-as-a-Service is a model in which licensed financial institutions expose their regulated banking infrastructure to non-bank businesses through APIs.
Read the definition → The Cash Conversion Cycle measures how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
Read the definition → Cash flow forecasting is the process of estimating the amount of cash a business expects to receive and pay out over a defined future period.
Read the definition → Cash flow management is the process of monitoring and optimising the timing and volume of cash entering and leaving a business.
Read the definition → A credit limit is the maximum amount of financing that a financial institution will extend to a buyer or supplier at any given time.
Read the definition → Days Inventory Outstanding measures the average number of days a company holds inventory before selling it.
Read the definition → Days Payable Outstanding measures the average number of days a company takes to pay its suppliers after receiving an invoice.
Read the definition → Days Sales Outstanding measures the average number of days it takes a company to collect payment after a sale has been made.
Read the definition → A digital wallet is a platform that stores payment information and can be enhanced with virtual account integration for multicurrency functionality and international payments.
Read the definition → In supply chain finance and early payment programs, the discount rate is the percentage deducted from an invoice’s face value in exchange for early payment.
Read the definition → Dynamic discounting is a flexible early payment solution where buyers offer suppliers the option to receive payment before the invoice due date in exchange for a discount.
Read the definition → EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortisation.
Read the definition → Embedded finance is the integration of financial services (lending, payments, insurance, banking) directly into non-financial platforms, products, and customer journeys.
Read the definition → Extended payment terms allow buyers to delay payment for goods or services beyond the standard payment period agreed upon with suppliers.
Read the definition → The accounting treatment of supply chain finance programs, particularly reverse factoring, has become a significant area of focus for standard-setters, auditors, and CFOs.
Read the definition → Invoice financing is a form of working capital funding that allows businesses to unlock cash tied up in unpaid invoices before the payment due date arrives.
Read the definition → Know Your Customer (universally abbreviated as KYC) is the process of verifying the identity of clients before and during a business relationship.
Read the definition → Open banking is a financial services model that allows third-party platforms and applications to access bank account data and initiate payments through secure APIs, with the customer’s consent.
Read the definition → Procure-to-Pay is the end-to-end process that covers everything from identifying a need to purchase goods or services through to paying the supplier.
Read the definition → Factoring, also referred to as receivables finance or invoice finance, allows businesses to receive immediate payment for outstanding invoices.
Read the definition → Reverse factoring is a buyer-led financing solution that allows suppliers to receive early payment on approved invoices, based on the buyer’s credit profile rather than the supplier’s.
Read the definition → Source-to-Pay is the end-to-end process that covers everything from sourcing strategy and supplier selection through to paying for delivered goods and services.
Read the definition → Supplier Relationship Management is the systematic approach to evaluating, managing, and developing a company’s interactions with its suppliers.
Read the definition → Trade finance refers to the financial instruments and products used by companies to facilitate domestic and international trade transactions.
Read the definition → Trade receivables are the amounts customers owe a business after buying goods or services on credit.
Read the definition → A virtual IBAN (vIBAN) is a unique bank account number that functions like a standard IBAN for receiving and identifying payments, but is not tied to a physical bank account in the traditional sense.
Read the definition → White labelling in financial services refers to the practice of one company’s product or platform being rebranded and offered by another company under their own name and identity.
Read the definition → Working capital is the difference between a company’s current assets and current liabilities, the net liquid resources available to fund day-to-day operations.
Read the definition → Working capital management is the process of optimising a company’s short-term assets and liabilities to ensure it has sufficient liquidity to meet operational needs while maximising the efficiency of its capital.
Read the definition → The working capital ratio (also known as the current ratio) measures a company’s ability to meet its short-term financial obligations using its short-term assets.
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