Back to All Posts

Calculum Inc


April 26, 2023
Read time:
10 min

Calculum Inc

Press kit

March 5, 2020
Read time:
1 min

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.

Accounts Payable

Also known as A/P. Money a business owes its suppliers is shown on the balance sheet as a liability.

Accounts Receivable

Also known as A/R. Money owed to a business by its clients and shown on its balance sheet as an asset.

Balance Sheet

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.

Basis Points

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.

Cash Flow

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.

Cash-to-Cash Cycle

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.

Cost of Goods Sold 

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.

Days Inventory Held

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.

Days of Payables Outstanding

Also known as DPO. The number of days taken by a company to pay its supplier.

Days of Sales Outstanding

Also known as DSO. A measure of the average number of days a company takes to collect revenue after a sale.

Deferred Payment

Payment for goods or services that is postponed to a later date, usually with interest or other charges applied.

Dynamic Discounting

A supplier financing strategy in which a buyer offers early payment.

Enterprise Resource Planning

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.

Economic Value Added

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

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.

Installment Payment

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.

Key Performance Indicator

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.

Know Your Customer

Also known as  KYC. Information and data requirement in the financial industry ensures risk takers and funders to know detailed information about their clients.

Letter of Credit

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.

Open Account

Also known as  Q&A. A standard transaction agreement between a buyer and a supplier with no guarantees involved.

Return on Investment

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.

Software as a Service

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.

Supply Chain Finance

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.

Supply Chain Management

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.

Weighted Average Cost of Capital

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.

Payment Terms

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.

Working Capital

Financial metric which represents operating liquidity available to a business, calculated as current assets minus current liabilities.

Working Capital Optimization

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.

Working Capital Ratio

A measure of a company's ability to pay off its short-term debts, calculated as current assets divided by current liabilities.

Current Assets

Assets that can be easily converted into cash within a year, such as cash, accounts receivable, and inventory.

Current Liabilities

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.

Operating Cycle

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.

Short-Term Financing

Financing used to cover short-term financial obligations, such as a line of credit, trade credit, or invoice factoring.

Cash Flow Forecast

A projection of future cash flows based on expected inflows and outflows, used to help manage working capital and plan for future expenses.

Discount Rate

The percentage rate by which an invoice is discounted when a buyer chooses to pay it early.

Early Payment Discount

The discount that a buyer receives for paying an invoice before its due date.

Supplier Financing

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.

Invoice Financing

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.

Early Payment Program

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.

Buyer-Led Dynamic Discounting

A dynamic discounting program where the buyer sets the discount rates and terms offered to suppliers for early payment of invoices.

Supplier-Led Dynamic Discounting

A dynamic discounting program where the supplier sets the discount rates and terms offered to buyers for early payment of invoices.

Discount Optimization

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.

Payment Term Optimization

The process of optimizing the payment terms between buyers and suppliers to maximize the benefits of dynamic discounting.

Reverse Factoring

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.

Supply Chain Risk

The potential for disruptions or events that could negatively impact the flow of goods and services within a supply chain.

Net Terms

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.

Payment on Delivery

Also known as POD. Payment made by a buyer to a seller at the time of delivery of goods or services.

Cash on Delivery

Also  known as COD. A payment term where payment is made in cash at the time of delivery of goods or services.

Deferred Payment

Payment for goods or services that is postponed to a later date, usually with interest or other charges applied.

Installment Payment

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.

Data Analytics

The process of analyzing and interpreting data to gain insights and inform business decisions.

Artificial Intelligence

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.

Purchasing Card

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.

Virtual Card

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
🡨  Back

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.