Verification
This describes when the Factor verifies the accuracy and status of the accounts receivable  or invoice with the client's customer.

Verification Fee
This is a fee assessed by many accounts receivable factors for performing the verification. DB Squared does not charge this fee.

Notification
This term describes the portion of the factoring process when the factor notifies the clients customer that the they will be collecting on the accounts receivable instead of the client.

Notification Fee
This is a fee that many factoring companies deduct for simply notifying the client's customer that the factor has assumed the accounts receivable. DB Squared does not charge this fee.

Funding
The timely delivery of funds in advance based on the amount of invoices sold to the factor.

Funding Fee
Some factoring companies charge a fee for funding their clients.  DB Squared does not charge this fee.

Reserve Release
The process of the factor releasing the final amount due to the client, minus any applicable fees or charge-backs, once the invoice has been paid in full.

Due Diligence
The process a business goes through when acting as a buyer. The buyer evaluates the assets and liabilities of another business before purchasing.

Due Diligence Fee
A fee assigned by the buyer to compensate for the time spent during the due diligence process. DB Squared does not charge a due diligence fee.

Non-Recourse Factoring
A method of Factoring where the factor purchases receivables and then assumes full credit risk for non-payment by a customer. DB Squared is a non-recourse factor.

Recourse Factoring
A method of factoring where the factor purchases receivables and does not assume any credit risk for non-payment of the invoice. If the account debtor does not pay the invoice, a recourse factor will sell the invoice back to the business at face value. The business who first sold the invoice must then assume responsibility for collecting on that invoice. 

Cash Flow
In business terms, cash flow involves the flow of cash into a company in the form of revenues, and out of the company in the form of expenses.

Discount Rate
The percentage of the face amount of an invoice that a factor keeps or charges as its fee for factoring and other services. This may also be called the factor's fee.