A - B
- C - D - E
- F - G - H
- I - J - K
- L - M
N - O
- P - Q
- R - S
- T - U
- V - W -
X - Y
- Z
"A"
credit customers: Consumers with impeccable
credit, who can obtain a loan from traditional lenders.
Acceleration Clause: Language in a lease
that secures payments for the full term of the lease.
Accounts Payable:
The amount of money a company owes for goods and services
it has received; any outstanding debt that a company has.
Accounts Receivable:
A collection of a company's outstanding invoices (invoices
which have not yet been paid by the company's customers).
Accounts Receivable Aging
Report: A report showing how long invoices
from each customer have been outstanding.
Advance Rate:
The percentage of the face amount of an income stream
that a funding source will advance to a client.
Amortization:
The gradual, systematic payment of a debt, such as a mortgage
or other loan, in installments of principal and interest
for a definite time, so that at the end of that time,
the debt will have been paid in full.
Articles of Incorporation:
A document filed with a U.S. state by the founders of
a corporation. After approving the articles, the state
issues a Certificate of Incorporation; the two documents
together become the Charter of Incorporation.
Asset: Anything
having commercial or exchange value that is owned by a
business, institution or individual. A business' assets
might include its real estate, equipment inventory, intellectual
assets such as copyrights or trademarks, and accounts
receivable.
Assignability: The
ability to assign (or sell) an income stream to another
individual or business.Assignee: The person or business
entity who is given, obtains, or buys the right to an
asset.
Assignment:
The transfer of the rights, title or interest of any debt
instrument that is properly owned by another party.
Assignor:
The person giving or selling an asset, and subsequently,
forfeiting rights to that asset.
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"B"
through "D" credit customers:
These consumers have less than perfect to bad credit and
usually cannot qualify for traditional financing. Also
called sub-prime credit customers.
Bad Debt:
Any debt that is delinquent and has been written off as
uncollectible.
Balance sheet:
A financial statement that shows a business' current financial
condition, with assets on the left side and liabilities
and net worth on the right side.
Balloon:
The balance of principal that is due and owing in its
entirety at a specified point in time, but in any event,
less than the time required to fully amortize the debt.
Bankruptcy:
A state of insolvency of an individual or organization.
The inability to pay debts.
Beneficiary:
The person or party entitled to receive the benefits,
or proceeds, of the life insurance policy upon the death
of the insured person.
Bill of Lading:
A shipping document which gives instructions to the company
transporting the goods.
Bill of Sale: A
document used to transfer the title of certain goods from
seller to buyer.
Business-based income streams:
Cash flow instruments that are paid to
a business by another business or government.
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Cash
flow: The flow of cash through a business
or household. In business terms, cash flow involves the
flow of cash into a company in the form of revenues, and
out of the company in the form of expenses.
Cash flow broker:
Professional whose primary purpose is to unite income
stream sellers with funding sources. They may operate
as referral sources or as the primary liaison for cash
flow transactions.
Cash flow industry:
The buying, selling, and brokering of privately held debt
in the secondary marketplace; the marketplace where businesses
and individuals get help managing their cash flow needs.
Cash flow instrument:
Future payment or series of payments. Also called a debt
instrument or income stream.
Cash flow specialist:
A cash flow professional who brokers cash flow transactions
or buys cash flow instruments.
Cash flow transaction:
Occurs whenever a funding source pays cash to an individual
or business in exchange for an income stream.
Chattel mortgage:
A mortgage on personal property, given to secure a debt.
Typically used in the sale of a business. Also called
a security agreement.
Collateral:
Something of value (land, a home, a car, etc.) that is
pledged as security to ensure the payment of a debt. Collateral
is promised to a lender until a loan is repaid. If the
borrower defaults, the lender has the right, by law, to
seize the collateral.
Collateral-based income
streams: Cash flow instruments that are
secured by collateral.
Collectibility:
Refers to the funding source's ability to collect future
income stream payments once they are purchased.
Commission: Fee
paid to a broker for executing or referring a cash flow
transaction.
Consumer-based income streams:
Cash flows in which the party that owes payments is a
consumer, a private individual.
Contingency-based income
streams: Cash flows in which the recipient
is not necessarily legally entitled to receive payments,
or in which the amount of the payment is uncertain or
contingent upon outside factors.
Conversion:
The process of converting a qualified prospect into an
active client.
Corporation:
A legal entity, chartered by a U.S. state or the federal
government, and separate and distinct from the persons
who own it. It is regarded by the courts as an artificial
person; it may own property, incur debts, sue or be sued.
Creditor:
One who is owed payments on a debt by a debtor.
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Debt
instrument: Future payment or series of
payments, or a debt that one party owes to another party.
Also known as income streams or cash flow instruments.
Debtor:
One who owes something and makes payments to a creditor.
Default:
The omission or failure to perform or fulfill a legal
duty, obligation, or promise (i.e. to pay a debt).
Due diligence:
Exhaustive research on a transaction, income stream, client,
and/or payor. Due diligence may involve credit checks,
appraisals, UCC searches, lien searches, or on-site visits
with clients.
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Equity:
The value or interest an owner has in
property over and above any indebtedness owed on the property.
Escrow:
The system by which money documents, personal property,
or real property is held in trust for another party by
a disinterested third party until the terms and conditions
of the escrow instructions are completed or terminated.
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Face
value: The current principal balance on
an income stream.
Factor: A funding source that specializes
in funding accounts receivable.
Factoring: The purchase of a business'
accounts receivable at a discount.
Fictitious name:
A legal statement filed when a person uses a name other
than his or her own to operate a business.
Foreclosure:
A legal proceeding in court to seize property given as
security for a debt that is in default.
Funding source:
An individual investor or an investment company that buys
income streams.
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Government-based
income streams: Cash flows
paid by a government entity, either directly or through
an insurance company.
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Hypothecation:
Borrowing funds from a lender, investing those funds in
a debt instrument, and giving the lender a security interest
in the debt instrument as the collateral for the loan.
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Income
stream: A future payment or series of
payments, or a debt that one party owes to another party.
Also known as a debt instrument or cash flow instrument.
Institutional lenders: Savings and loan
associations, local and regional banks, mortgage companies,
finance companies, and commercial lenders.
Insurance-based income
streams: Cash flows stemming from insurance
companies and paid to individuals or businesses.
Intangible personal property:
Something that has value but is not a tangible asset,
for example, a trademark, copyright, patent, or trade
secret.
Investment-to-value ratio:
A measure of how secure a creditor's position is and how
likely the creditor is to recoup all of his or her money
in the event of a foreclosure.
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Joint
venture: A business entity established
for a specific task, operation, or goal.
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Lead:
A piece of information of possible use in the search for
a prospective client.
Leverage: The
ratio of debt to total assets.
Limited liability company:
A form of business structure designed to combine the best
of corporate and partnership attributes into one entity.
Loan-to-value ratio:
A measure of how heavily mortgaged a property is and how
likely the owner is to default on his or her debts.
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Marginal
credit customers: Consumers who may have
had some slow pay problems, but generally pay their bills.
Market value:
The price at which a ready, willing, and informed person
would buy something; the price property would command
in the current market.
Marketing:
The process of identifying and communicating with qualified
prospects.
Master Broker:
Individual who has been certified and designated by the
American Cash Flow Association to work with Diversified
Cash Flow Specialists.
Mortgage:
A written instrument that creates a lien by pledging real
property as security for a debt.
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