Glossary

The five C's of credit is a description of the important general characteristics that lenders should consider and evaluate when it is considering making a loan. These considerations incorporate both qualitative and quantitative measures and require both intuition and judgement as well as analysis of facts.

The accounts payable aging report categorizes payables to suppliers based on time buckets.

An accounts receivableagingis a report that lists unpaid customer invoices and unused credit memos by date ranges. 

AR Concentrations is a term used to describe the largest customers of a borrower. AR Concentrations represent a credit risk to lenders in two different ways.

ABL lite refers to Asset Based Loans that do not utilize all of the controls, reporting or other tools typically found in a closely monitored ABL Loan.

An electronic network used to process financial transactions between two parties, including disbursements for payroll, vendors, and taxes.

A feature of some loan agreements that allows the borrower to add a new term loan tranche or increase the revolving credit loan commitments under an existing loan facility up to a specified amount under certain terms and conditions.

"Account", is defined in Article 9 of the UCC. It is the legal term for what a lender would typically call an Account Receivable.