Glossary
Account Debtor
The obligor responsible for paying an invoice auctioned on The Receivables Exchange
Accounts Receivable
Accounts owed to the Seller arising out of the sale of goods or performance of services
Advance Amount
The amount that a Buyer is willing to pay or advance to the Seller upon purchase of a receivable
Buyers
The institutional investor who purchases a receivable on the Exchange
Buyout Price
The price which if bid by a single Buyer will result in the instantaneous awarding of the auction, thereby closing all further bidding
Days Sales Outstanding (DSO)
Accounts Receivable/(Total Revenue/365) Days Sales Outstanding is a company's average collection period. A low number of days indicates that the company collects its outstanding receivables quickly.
Discount Fee
The fee that a Buyer receives as a result of the purchase of a receivable.
Factoring
Factoring is a financing method in whereby a business sells their receivables to a third-party funding source at a discount.The Receivables Exchange is not a factoring company, but an innovative marketplace where invoices are sold and purchased.
Invoice
The legal debt instrument which indicates the face value due from an Account Debtor to pay the Seller for delivered goods or services.
Invoice Date
The date an invoice is issued
Invoice Due Date
The specified date listed on the invoice by which a Seller requests payment by the Account Debtor
Lockbox
The depository account maintained by The Receivables Exchange with a third party commercial bank
Receivables
Accounts owed to the Seller arising out of the sale of goods or performance of services
Repurchase Amount
The amount that the Seller is obligated to pay to repurchase a receivable from the Buyer in the event of non-payment by their Account Debtor.
Repurchase Date
The date on which the Seller is obligated to repurchase a Receivable from the Buyer in the event of non-payment by their Account Debtor
Repurchase Obligation
This refers to the Seller’s agreement and obligation to repurchase a receivable from the Buyer in the event of non-payment by their Account Debtor
Sellers
Businesses registered with The Receivables Exchange and eligible to post receivables at auction for sale to Buyers on the Exchange.
Working Capital
Also referred to as net current assets, working capital is equal to current assets minus current liabilities. It measures how much a company has available in liquid assets.