Our media pack is available for download and contains the Calculum logos and company information. If you’d like to receive our press releases, organise an interview, and collaborate on a content piece, please contact us.
Download Glossary
Calculum Inc
Calculum Inc
Our media pack is available for download and contains the Calculum logos and company information. If you’d like to receive our press releases, organise an interview, and collaborate on a content piece, please contact us.
Download Glossary
A downloadable version can be found at the end of this page.
Also known as A/P. Money a business owes its suppliers is shown on the balance sheet as a liability.
Also known as A/R. Money owed to a business by its clients and shown on its balance sheet as an asset.
Official statement of financial health that includes assets and liabilities. It also details expenses and income over time. The balance sheet determines the probability of financial risk in doing business with or lending to a company.
Also known as BPS. Basis point refers to a standard unit of measure for interest rates and other percentages in finance. Usually, it is used to denote the percentage change in a financial instrument. The relationship between percentage changes and basis points can be summarized as 1% change = 100 basis points and 0.01% = 1 basis point.
A company that purchases goods or services from Suppliers; the Supplier’s customer. E.g., a production plant (the Buyer) buys supplies from a raw materials Supplier.
The amount of money that comes in and goes out of a business or individual's account over a period of time. Positive cash flow means more money is coming in than going out, while negative cash flow means more money is going out than coming in. Managing cash flow is essential for understanding and planning financial obligations and goals.
Als know as C2C. The cash-to-cash cycle or cash conversion cycle is the time period between when a business pays its suppliers for inventory and receives payment from its customers.
Also known as COGS. The direct costs are attributable to the production of the goods a company sells. This amount includes the cost of the materials used in creating the goods and the direct labor costs used to produce the goods. It excludes indirect expenses such as distribution costs and sales force costs.
Also known as DIO. The number of days when inventory such as raw material, work-in-progress and finished goods is held in a company before being sold.
Also known as DPO. The number of days taken by a company to pay its supplier.
Also known as DSO. A measure of the average number of days a company takes to collect revenue after a sale.
Payment for goods or services that is postponed to a later date, usually with interest or other charges applied.
A supplier financing strategy in which a buyer offers early payment.
Also known as ERP. A system integrating internal and external management information across an entire organization, embracing multiple departments such as finance, accounting, manufacturing, sales and service, and customer relationship management.
Also known as EVA. The difference between the net operating profit after tax and the cost of capital employed to generate profit.
Extended payment terms are strategies companies use to delay payments of invoices. It is usually a bit longer-than-normal period, sometimes exceeding 120 days or more.
Payment for goods or services that is divided into several smaller payments, usually with interest or other charges applied.
Legal documentation providing evidence of goods/services rendered, the amount due for those goods or services, the parties involved in the transaction, and the payment terms of the transaction.
Also known as KPI. Business indicators commonly used by an organization to evaluate its success or the success of a particular activity in which it is engaged.
Also known as KYC. Information and data requirement in the financial industry ensures risk takers and funders to know detailed information about their clients.
Also known as L/C. A documentary credit, provides the guarantee that a buyer‘s bank will pay the supplier’s bank on time if the supplier presents it to his bank.
Refers to the efficiency or ease with which an asset or security can be converted into ready cash without affecting its market price. The most liquid asset of all is cash itself.
Also known as Q&A. A standard transaction agreement between a buyer and a supplier with no guarantees involved.
Also known as ROI. A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of several different investments. It is one way of considering profits in relation to capital invested.
Also known as SaaS. A software delivery model in which software and associated data are centrally hosted on the cloud. SaaS is typically accessed by users using a thin client via a web browser.
Also known as SCF, Supplier Finance, and Reverse Factoring. A form of trade finance using technology solutions that provides working capital to suppliers and/or buyers within any part of a supply chain, typically arranged on the credit risk of a large corporate buyer within that supply chain.
Also known as SCM. Supply chain management oversees materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer. Supply chain management involves coordinating and integrating these flows within and among companies.
A company that sells goods or services to a Buyer. In supply chain finance, Suppliers are enrolled in an early payment program to receive an advance payment on their invoices to specific Buyers.
Also known as WACC. Rate that a company is expected to pay on average to all its security holders to finance its assets. It is the minimum return that a company must earn on an existing asset base to satisfy its creditors, owners, and other providers of capital.
The agreed-upon terms and conditions between a buyer and seller regarding the payment for goods or services. Payment terms typically include the due date for payment, the currency of payment, the method of payment, and any discounts or penalties for early or late payment. Payment terms are an important aspect of managing cash flow and financial risk for both buyers and sellers in a business transaction.
Financial metric which represents operating liquidity available to a business, calculated as current assets minus current liabilities.
The working capital optimization cycle is a way of looking at a company’s receivables, payables, and inventory and at how it handles those on a day-to-day basis. The cycle provides a look at how much working capital it takes to run your business.
A measure of a company's ability to pay off its short-term debts, calculated as current assets divided by current liabilities.
Assets that can be easily converted into cash within a year, such as cash, accounts receivable, and inventory.
Liabilities that are due within a year, such as accounts payable, short-term loans, and accrued expenses.
The stock of goods or raw materials that a company holds for sale or use in its operations.
Also known as Cash-to-Cash Cycle. The time it takes for a company to purchase raw materials, manufacture products, and sell them, and then collect payment from customers.
Financing used to cover short-term financial obligations, such as a line of credit, trade credit, or invoice factoring.
A projection of future cash flows based on expected inflows and outflows, used to help manage working capital and plan for future expenses.
The percentage rate by which an invoice is discounted when a buyer chooses to pay it early.
The discount that a buyer receives for paying an invoice before its due date.
Also known as Supply Chain Finance. A financing option where suppliers can obtain early payment for their invoices from a third-party financing provider in exchange for a fee.
A financing option where a supplier sells its outstanding invoices to a third-party financing provider, known as a factor, in exchange for immediate cash.
A financing program offered by a buyer to its suppliers, allowing them to receive early payment for their invoices in exchange for a discount or fee.
A dynamic discounting program where the buyer sets the discount rates and terms offered to suppliers for early payment of invoices.
A dynamic discounting program where the supplier sets the discount rates and terms offered to buyers for early payment of invoices.
The process of maximizing the benefits of dynamic discounting by finding the optimal discount rates and terms that balance the cost of early payment with the value of the discount.
The process of optimizing the payment terms between buyers and suppliers to maximize the benefits of dynamic discounting.
Also known as Supply Chain Finance. A financing strategy in which a buyer arranges financing for its suppliers at a lower cost, leveraging its own creditworthiness.
The potential for disruptions or events that could negatively impact the flow of goods and services within a supply chain.
The payment period granted by a seller to a buyer after the delivery of goods or services, usually expressed as a number of days, e.g. "Net 30" means payment is due within 30 days of delivery.
Payment made by a buyer to a seller before the delivery of goods or services.
Also known as POD. Payment made by a buyer to a seller at the time of delivery of goods or services.
Also known as COD. A payment term where payment is made in cash at the time of delivery of goods or services.
Payment for goods or services that is postponed to a later date, usually with interest or other charges applied.
Payment for goods or services that is divided into several smaller payments, usually with interest or other charges applied.
A company that leverages technology to provide financial services, such as payment processing and supply chain financing.
The process of analyzing and interpreting data to gain insights and inform business decisions.
Also known as AI. The use of machine learning algorithms and other advanced technologies to automate and improve various aspects of the payment and supply chain process, such as fraud detection and invoice processing.
Also known as P-card. type of payment card issued by a company to its employees to make purchases on behalf of the company. P-cards are typically used for low-value purchases and are designed to streamline purchasing and reduce administrative costs. They allow employees to charge purchases directly to the company's account with the card issuer rather than requiring the employee to submit an expense report and wait for reimbursement.
Payment card used for a single transaction or a limited set of transactions. Unlike traditional payment cards, virtual cards do not have a physical form and are typically used for online purchases or other transactions where a physical card is not necessary.
Download Glossary