GLOSSARY

ACCOUNTS RECEIVABLE:
Amounts due from others for goods furnished and services rendered. Such amounts include reimbursements earned and refunds receivable.

BRIDGE FUNDING:
Funds provided on a short-term basis to bridge the gap between the purchase of one asset and the sale of another.

CHAPTER 11:
A Federal Bankruptcy Act where a debtor can maintain control of its business and operations, under court supervision, as long as current debts remain paid.

FACTORING:
The selling of a company's accounts receivable to a third party, in order to obtain funding.

LETTER OF CREDIT:
A document, issued by a financial institution per instructions by a buyer of goods, authorizing the seller to draw a specified sum of money under specified terms, usually the receipt by the bank of certain documents within a given time.

PURCHASE ORDER FINANCING:
The assignment of purchase orders to a third party who then assumes the obligation of billing and collecting. Usually, this type of financing is related to a specific transaction where the company requires cash to be able to acquire the raw materials to manufacture the goods for which it has received the purchase order.

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