The FinFloh Blog

Invoice Processing Definition : Invoice processing is the procedure through which businesses handle, verify, and pay invoices for goods and services they’ve purchased. This vital component of the Accounts Payable (AP) process ensures that all financial obligations are met promptly, accurately, and in compliance with the company’s financial policies. At its core, invoice processing involves […]

Holdback Definition : In finance and business transactions, a holdback refers to a portion of funds withheld by one party to ensure the fulfillment of specific obligations or conditions by the other party. It is a contractual mechanism used to mitigate risk, protect interests, and incentivize compliance with agreed-upon terms. Holdbacks are commonly seen in […]

General Ledger Definition : A General Ledger (GL) is the central repository of a company’s financial data, serving as the cornerstone of its accounting system. It provides a comprehensive record of all financial transactions, categorized and summarized into accounts such as assets, liabilities, equity, revenues, and expenses. The general ledger is essential for maintaining financial […]

Why Credit Scoring Matters in B2B Businesses In the B2B world, credit scoring is more than just a number—it’s the foundation for making sound financial decisions. Credit scoring helps businesses assess customer creditworthiness, set credit limits, and manage financial risk. It’s a critical tool that determines how smoothly and securely businesses can operate. But what […]

Manual credit risk scoring has become a liability for modern B2B businesses. Assessing buyer creditworthiness is vital to ensure smooth operations and financial stability. But traditional credit risk scoring methods, which rely on manual calculations and static data, often fall short. These outdated processes are slow, error-prone, and incapable of delivering the actionable insights businesses […]

Fast Moving Consumer Goods (FMCG) Definition : Fast-Moving Consumer Goods (FMCG) are products that are sold quickly at relatively low cost. These goods are characterized by their high demand, frequent purchase cycles, and rapid turnover, making them a significant part of the retail sector. FMCG products are typically non-durable items that are consumed regularly and […]

Early Payment Discount Definition : An Early Payment Discount (EPD) is a financial incentive offered by a supplier to a buyer for paying invoices before the due date. Typically, this discount is a percentage of the total invoice amount and is designed to encourage buyers to settle their outstanding payments early. By doing so, both […]

Days Payable Outstanding Benchmark Definition : The Days Payable Outstanding (DPO) Benchmark is a key financial metric used by businesses to measure the average number of days it takes for them to pay their suppliers after receiving an invoice. It is an essential component of managing a company’s cash flow and supplier relationships, offering valuable […]

Capital Structure Definition : Capital Structure refers to the mix of a company’s long-term debt, equity, and retained earnings used to finance its overall operations and growth. It represents the way in which a firm raises funds to support its business activities, such as funding its working capital, making capital expenditures, or driving expansion strategies. […]

B2B Credit Management Definition : B2B (Business-to-Business) credit management refers to the process by which companies manage the credit extended to other businesses for goods or services sold on credit terms. It involves assessing, monitoring, and controlling the credit risk associated with trading on credit in order to ensure timely payments, maintain healthy cash flow, […]

Accounting Equation Definition : he accounting equation is a fundamental principle in accounting that forms the foundation for the double-entry bookkeeping system. It represents the relationship between a company’s assets, liabilities, and equity. The equation is expressed as: Assets = Liabilities + Equity This simple yet powerful equation ensures that a company’s financial records remain […]

Zero-Touch Cash Posting Definition : Zero-Touch Cash Posting refers to the automated process of applying and reconciling incoming payments to corresponding invoices without manual intervention. It leverages advanced technologies like artificial intelligence (AI), machine learning (ML), and optical character recognition (OCR) to streamline cash application workflows, eliminating human errors, reducing processing time, and ensuring real-time […]