Common terms for regulated financial services.
A working dictionary for collections, receivables, compliance, and payments, written for operators, not lawyers.
The Automated Clearing House (ACH) is a U.S.-based electronic network that facilitates secure, low-cost bank-t…
The term "AI-driven recovery" describes how artificial intelligence (AI) technology are being used to improve,…
The process of monitoring and managing the money that clients owe a company for goods or services that were pr…
An aged debtors report, also known as an accounts receivable aging report, is a financial statement that lists…
Aging buckets are a financial accounting tool used to categorize outstanding accounts receivable or accounts p…
Laws that prohibit monopolistic or anti-competitive behaviour in the marketplace and encourage fair competitio…
Automated collections refer to the use of artificial intelligence and automation technologies to manage the de…
Bad debt refers to unpaid sums that a business is unlikely to collect from its customers, typically due to non…
A balance sheet is a financial statement that presents a snapshot of a company’s financial position at a speci…
A court-issued legal order known as a bankruptcy discharge permanently absolves a debtor, whether an individua…
Bankruptcy filing is a formal legal process that allows individuals, small businesses, or corporations overwhe…
A billing cycle is the recurring time period a business or organization uses to track financial , activity cha…
Chapter 11 bankruptcy is a legal process that allows businesses and certain individuals to restructure debt wh…
Chapter 7 bankruptcy is a legal process that allows individuals and businesses to eliminate most unsecured deb…
Collateral in debt collection refers to a valuable asset pledged by a borrower to secure a loan or credit. If …
A third-party business called a collection agency is employed to collect past-due payments, usually when invoi…
The Collection Effectiveness Index or CEI is a financial metric used to evaluate how efficiently a company col…
Credit bureaus are specialized agencies that collect, maintain, and analyze consumer and business credit infor…
Credit insurance is a financial risk management tool that protects businesses from losses due to non-payment o…
A credit limit is the maximum amount of credit that a lender, supplier, or service provider allows a customer …
Credit risk is the possibility that a customer, borrower, or business partner will fail to meet their financia…
Days Sales Outstanding (DSO) is a key financial metric that measures the average number of days it takes a bus…
Debt consolidation is a financial strategy that combines multiple debts into a single loan or repayment plan, …
Default debt refers to a situation where a borrower fails to fulfill their repayment obligations on a loan or …
Dental accounts receivable, also called dental A/R, is the money owed to a dental practice for treatment that …
Dental billing software is a technology platform that helps U.S. dental practices manage insurance claims, pat…
Dental collections is the process of resolving and recovering unpaid patient balances after dental services ha…
Dental insurance verification is the process of confirming a patient’s eligibility, plan benefits, coverage li…
Dental revenue cycle management is the end-to-end process through which a U.S. dental practice converts comple…
In the context of debt collection, dispute resolution is the process of resolving disagreements between a busi…
A dunning letter is a formal written reminder sent to customers about overdue payments. It is used as part of …
An e-invoice is a digital version of a traditional invoice that is generated, transmitted, received, and store…
An ERP system, or Enterprise Resource Planning system, is an integrated software platform used to manage and a…
Early-Stage Delinquency refers to an account that has become past due but remains within the initial collectio…
End of Month Collections refers to the strategic process of recovering outstanding receivables during the fina…
Engagement Score is a measure of how responsive and interactive a customer has been across outreach channels, …
Escalation is the process of moving an account to a more formal or urgent stage of the collections process, su…
Exempt payments refer to financial transactions or income streams that are excluded from taxation under specif…
A federal law in the United States called the Fair Debt Collection Practices Act (FDCPA) was passed in 1977 wi…
A FICO score is a standardized credit score developed by the Fair Isaac Corporation (FICO) that evaluates a co…
The Federal Trade Commission (FTC) is an independent agency of the United States government responsible for pr…
HIPAA compliance refers to the adherence to the guidelines and rules set forth by the Health Insurance Portabi…
Healthcare collections refer to the process of obtaining payments from patients or insurance companies for med…
A high risk account refers to a financial or merchant account associated with elevated levels of fraud, charge…
Insolvency in debt collections refers to a financial condition where an individual or business is unable to me…
Installment payments are a structured payment method that enables consumers to pay for goods or services over …
Invoice aging is a financial process used to monitor and categorize unpaid invoices based on how long they hav…
Late fees are financial charges applied when a customer or borrower fails to make a payment by the agreed due …
A Letter of Credit (LC) is a financial instrument issued by a bank that guarantees payment to a seller, provid…
A line of credit (LOC) is a flexible financing arrangement that provides borrowers with access to a predetermi…
Liquidation is the formal process of closing down a business by converting its assets into cash in order to re…
Litigation refers to the formal legal process used to resolve disputes through the court system. It involves f…
Live Sentiment Analysis is an AI capability that detects a customer's emotional tone, such as frustration, har…
A lockbox is a bank-managed service used in debt collections to streamline the receipt and processing of payme…
The term "manual collections" describes the conventional, time-consuming method of collecting past-due debts t…
Month-end reconciliation is a fundamental accounting process that ensures the accuracy and integrity of financ…
A monthly statement is a periodic summary that outlines an account's activity, including outstanding balances,…
A bill that has been sent to a customer but has not yet been paid is known as an open invoice. The invoice dat…
The net amount of cash produced by a company's main business operations during a certain time period is known …
An outstanding balance refers to the total amount of money owed by a debtor that remains unpaid. In the contex…
A partial payment refers to any payment made that is less than the total amount owed on a debt, invoice, or lo…
A payment plan is a structured agreement between a creditor and a debtor that allows the debtor to repay an ou…
Portfolio risk is the potential for financial loss due to adverse movements in the value of a collection of in…
A Promise to Pay (P2P) agreement is a legal commitment made by a debtor to pay a certain sum by a predetermine…
A promissory note is a cornerstone instrument in debt recovery, offering both clarity and legal protection for…
The Recovery Rate is the percentage of total receivables that a company successfully collects from its clients…
Remittance, the transfer of funds across borders-is a cornerstone of global finance, enabling individuals and …
Repossession is a critical debt recovery mechanism that allows lenders to reclaim collateral when borrowers de…
A risk score is a numerical or categorical rating that predicts how likely a customer is to delay or default o…
A secured loan is one that is supported by collateral, which is an item that the borrower pledges as security …
A secured loan is a form of credit in which the borrower pledges an asset, such as real estate, vehicles, inve…
Skip tracing is the systematic process of locating individuals who have become difficult to contact, often to …
Tele-collections, the strategic use of telephone communication to recover unpaid debts, has evolved into a cri…
Third-party collections refer to the practice of outsourcing debt recovery efforts to an external collection a…
Time-barred debt is a critical concept in debt management, shaping how creditors and borrowers navigate old fi…
The Uniform Commercial Code (UCC) is a standardized set of laws designed to govern and simplify commercial tra…
An unconfirmed letter of credit is a type of LC issued by the buyer’s bank, also known as the issuing bank, th…
Underwriting is the systematic process of assessing risk before approving a financial product, be it a loan, i…
Unpaid invoices refer to outstanding bills or receivables that a customer has not settled by the agreed-upon d…