Trying to sort out the meanings of terms such as“receivables factoring?” Let this easy-to-understand business funding glossary guide you.

Tangible Personal Property: Personal property other than real estate, such as cars, boats or other assets.

UCC-1: A financing statement (Form UCC1) is filed to perfect a security interest in named collateral, and establishes priority in case of debtor default or bankruptcy. UCC (also known as the Uniform Commercial Code) refers to the collection of laws dealing with commercial business.

Uniform Commercial Code (UCC): Standardized set of guidelines protected by law that sets down how business transactions must be conducted.

Verification: Refers to the process whereby a factor verifies that the goods and services represented as provided and invoiced by the client to the customer, were in fact provided and accepted, and that the customer intends to pay the factor the money due under the invoice. This process is performed and satisfied prior to making the advance payment to the client against the invoiced amount.

Working Capital: In general, the funds needed by a business to pay current expenses such as payroll, benefits, rent and other operating costs.

Need additional information about receivables factoring as a form of business funding? MP Star Financial is ready to help. Just call toll-free today at 1-800-833-3765, ext. 150 or email your business funding questions about receivables factoring.