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Financial Terms | |
Old-line factoring |
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Definition of Old-line factoringOld-line factoringfactoring arrangement that provides collection, insurance, and finance for accounts receivable.
Related Terms:45-Degree LineA line representing equilibrium in the goods and services market, on a diagram with aggregate demand on the vertical axis and aggregate supply on the horizontal axis. Annualized holding period returnThe annual rate of return that when compounded t times, would have Bank lineline of credit granted by a bank to a customer. Bill and Hold PracticesProducts that have been sold with an explicit agreement that delivery bottom lineA commonly used term that refers to the net income (profit) Buy-and-hold strategyA passive investment strategy with no active buying and selling of stocks from the Capital market line (CML)The line defined by every combination of the risk-free asset and the market portfolio. ![]() Cash flow time-lineline depicting the operating activities and cash flows for a firm over a particular period. Characteristic lineThe market model applied to a single security. The slope of the line is a security's beta. Cold-Turkey PolicyDecreasing inflation by immediately decreasing the money growth rate to a new, low rate. Contrast with gradualism. Conflict between bondholders and stockholdersThese two groups may have interests in a corporation that Cost of goods soldThe cost of merchandise that a company sold this year. For manufacturing companies, the cost of raw Cost of goods soldSee cost of sales. Cost of goods soldThe cost of the items that were sold during the current period. Cost of goods soldThe accumulated total of all costs used to create a product or service, Cost of goods soldThe charge to expense of the direct materials, direct labor, and ![]() Cross holdingsOne corporation holds shares in another firm. Demand line of creditA bank line of credit that enables a customer to borrow on a daily or on-demand basis. EquityholdersThose holding shares of the firm's equity. Euro lineslines of credit granted by banks (foreign or foreign branches of U.S. banks) for Eurocurrencies. FactoringSale of a firm's accounts receivable to a financial institution known as a factor. FactoringThe sale of accounts receivable to a third party, with the third party bearing FactoringThe discounting, or sale at a discount, of receivables on a nonrecourse, notification FactoringType of financial service whereby a firm sells or transfers title to its accounts receivable to a factoring company, which then acts as principal, not as agent. Formalized Line of CreditA contractual commitment to make loans to a particular borrower up to a specified maximum during a specified period, usually one year. Gold exchange standardA system of fixing exchange rates adopted in the Bretton Woods agreement. It Gold standardAn international monetary system in which currencies are defined in terms of their gold ![]() Gold StandardA fixed exchange rate system in which a currency is directly convertible into gold. Golden parachuteCompensation paid to top-level management by a target firm if a takeover occurs. golden parachutea benefits package that is triggered by the hold missiona mission that attempts to protect the business Holder-of-record dateThe date on which holders of record in a firm's stock ledger are designated as the Holding companyA corporation that owns enough voting stock in another firm to control management and Holding periodLength of time that an individual holds a security. Holding period returnThe rate of return over a given period. Investment product line (IPML)The line of required returns for investment projects as a function of beta Leasehold improvementThis is any upgrade to leased property by a lessee that will be Leasehold improvementsThe cost of improvements made to property that the company leases. line employeean employee who is directly responsible for Line itemGeneric types of assets, liabilities, income or expense that are common to all businesses and Line of credit An informal arrangement between a bank and a customer establishing a maximum loan Line of creditAn informal arrangement between a bank and a customer establishing a maximum loan line of creditAgreement by a bank that a company may borrow at any time up to an established limit. Line of CreditAn agreement negotiated between a borrower and a lender which establishes the maximum amount against which a borrower may draw. The agreement also sets out other conditions, such as how and when money borrowed against the line of credit is to be repaid. line of creditA revolving source of credit with a pre-established limit. You access the funds only as you need them, and any amount that you pay back becomes accessible to you again. Unlike a personal loan, a line of credit permits you to write cheques and make bank machine withdrawals, and requires you to pay interest only on the funds that you actually use. Linear programmingTechnique for finding the maximum value of some equation subject to stated linear constraints. linear programminga method of mathematical programming used to solve a problem that involves an objective function and multiple limiting factors or constraints long-term variable cost a cost that was traditionally viewed as a fixed cost Linear regressionA statistical technique for fitting a straight line to a set of data points. Log-linear least-squares methodA statistical technique for fitting a curve to a set of data points. One of the Management Accounting Guidelines (MAGs)pronouncements of the Society of Management Accountants of Maturity factoringfactoring arrangement that provides collection and insurance of accounts receivable. Monetary goldGold held by governmental authorities as a financial asset. Mortgage pipelineThe period from the taking of applications from prospective mortgage borrowers to the Mortgage-pipeline riskThe risk associated with taking applications from prospective mortgage borrowers net income (also called the bottom line, earnings, net earnings, and netoperating earnings) online bill paymentThe electronic payment of a bill via the Internet. The specified amount of the bill is electronically debited from your account. Operating Line of CreditA bank's commitment to make loans to a particular borrower up to a specified maximum for a specified period, usually one year. Other-than-Temporary Decline in Market ValueThe standard used to describe a decline in market value that is not expected to recover. The use of the other-than-temporary description as Overbought/oversold indicatorAn indicator that attempts to define when prices have moved too far and too Personal Line of credit (Credit Insurance)A bank's commitment to make loans to a borrower up to a specified maximum during a specific period, usually one year. personal line of credit (PLC)A revolving source of credit with a pre-established limit. You access the funds only as you need them, and any amount that you pay back becomes accessible to you again. Unlike a personal loan, a PLC permits you to write cheques and make bank machine withdrawals, and requires you to pay interest only on the funds that you actually use. PolicyholderThis is the person who owns a life insurance policy. This is usually the insured person, but it may also be a relative of the insured, a partnership or a corporation. There are instances in marriage breakup (or relationship breakup with dependent children) where appropriate life insurance on the support provider, owned and paid for by the ex-spouse receiving the support is an acceptable method of ensuring future security. Presold issue An issuethat is sold out before the coupon announcement. product line marginsee segment margin RATE OF RETURN ON STOCKHOLDERS’ EQUITYThe percentage return or profit that management made on each dollar stockholders invested in a company. Here’s how you figure it: RATIO OF DEBT TO STOCKHOLDERS’ EQUITYA ratio that shows which group—creditors or stockholders—has the biggest stake in or the most control of a company: red-line systeman inventory ordering system in which a red regression lineany line that goes through the means (or averages) of the set of observations for an independent variable and its dependent variables; mathematically, there is a line of “best fit,” which is the least squares regression line Revolving line of creditA bank line of credit on which the customer pays a commitment fee and can take secured loan or line of creditA lump sum of funds (loan), or a revolving source of credit with a pre-established limit (line of credit), for which the customer must provide collateral. Security characteristic lineA plot of the excess return on a security over the risk-free rate as a function of Security market lineline representing the relationship between expected return and market risk. Security Market LineA graph illustrating the equilibrium relationship between the security market lineRelationship between expected return and beta. ShareholderOwner of one or more shares of stock in a corporation. Shareholder's EquityRepresents the total assets of a corporation less liabilities. Shareholder valueIncreasing the value of the business to its shareholders, achieved through a combination of Shareholders' equityThis is a company's total assets minus total liabilities. A company's net worth is the Shareholders' equityThe total amount of contributed capital and retained earnings; synonymous with stockholders' equity. Shareholders' EquityThe residual interest or owners' claims on the assets of a corporation Shareholders’ fundsThe capital invested in a business by the shareholders, including retained profits. Shareholders' letterA section of an annual report where one can find jargon-free discussions by Simple linear regressionA regression analysis between only two variables, one dependent and the other explanatory. Simple linear trend modelAn extrapolative statistical model that asserts that earnings have a base level and stakeholderAnyone with a financial interest in the firm. StakeholdersAll parties that have an interest, financial or otherwise, in a firm - stockholders, creditors, StockholderHolder of equity shares in a firm. StockholderA person or entity that owns shares in a corporation. Stockholder equityBalance sheet item that includes the book value of ownership in the corporation. It Stockholder's booksSet of books kept by firm management for its annual report that follows Financial Stockholder's equityThe residual claims that stockholders have against a firm's assets, calculated by Stockholders' equityThe total amount of contributed capital and retained earnings; synonymous with shareholders’ equity. stockholders' equity, statement of changes inAlthough often considered STOCKHOLDERS’ (OR OWNERS’) EQUITYThe value of the owners’ interests in a company. Straight-lineA method of depreciation. Straight line depreciationAn equal dollar amount of depreciation in each accounting period. STRAIGHT-LINE DEPRECIATIONA depreciation method that depreciates an asset the same amount for each year of its estimated straight-line depreciationThis depreciation method allocates a uniform straight-line depreciationConstant depreciation for each year of the asset’s accounting life. 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