The FinFloh Blog

Requested Credit Limit Definition : A requested credit limit refers to the amount of credit a borrower or customer requests from a financial institution, such as a bank or credit card issuer, when applying for a credit card, loan, or line of credit. It represents the maximum credit the individual or business hopes to access […]

Payment on Collection Basis Definition : Payment on collection basis is a payment method commonly used in international trade, where a seller ships goods to a buyer but retains control of the goods until full payment is made. This approach is designed to mitigate financial risks and ensure secure transactions between businesses. Table of Content […]

Operating Cash Flow Definition : Operating Cash Flow (OCF) refers to the cash a company generates through its regular business activities, such as sales of goods or services. It is a crucial metric used to assess a company’s financial health, as it highlights the ability of the business to produce enough cash to cover its […]

Net Terms Definition : Net terms refer to the payment conditions set between a buyer and a seller, outlining the period within which the buyer is expected to pay for goods or services after receiving an invoice. These terms are typically expressed as “Net 30,” “Net 60,” or “Net 90,” which indicates the number of […]

Month End Close Definition : The term “Month-End Close” refers to the critical accounting process businesses undertake at the end of each month to finalize their financial records for that period. This process ensures that all financial transactions, such as sales, expenses, and adjustments, are accurately recorded and reflected in the company’s financial statements. The […]

Liquid Assets Definition : Liquid assets refer to any assets that can be quickly and easily converted into cash with minimal price fluctuation. In simple terms, they are financial resources that can be accessed rapidly for immediate use or to cover short-term liabilities. Examples of liquid assets include cash, checking accounts, savings accounts, and marketable […]

Invoice to Cash Definition : Invoice to Cash (I2C) is a critical financial process within accounts receivable that spans the entire journey from issuing an invoice to receiving payment from a customer. This process plays a central role in maintaining a business’s cash flow, ensuring liquidity, and supporting operational stability. Table of Content : The […]

Financial Consolidation Definition : Financial Consolidation is the process of combining the financial statements of multiple subsidiaries or business units into a single, comprehensive report. This is typically done by parent companies or organizations with multiple branches, divisions, or subsidiaries. The goal of financial consolidation is to provide a clear and accurate overview of the […]

Electronic Benefits Transfer (EBT) Definition : Electronic Benefits Transfer (EBT) is a system used by governments in the United States to distribute financial assistance to individuals and families in need. This electronic system allows recipients to access their benefits, such as food assistance or cash benefits, through a debit-like card, eliminating the need for physical […]

Debit Memos Definition : A debit memo is a financial document used by businesses to make adjustments to a customer’s account, typically reducing the amount owed. It is commonly used in the accounts receivable process to correct billing errors, apply discounts, or adjust for returns or overpayments. Debit memos serve as a formal notice of […]

Cash Concentration Definition : Cash concentration is a treasury management technique used by businesses to efficiently manage their cash flow by consolidating funds from multiple accounts into a central account. This process helps organizations optimize liquidity, improve financial control, and streamline cash management. By concentrating funds from various subsidiaries, divisions, or locations into a primary […]

Balance Sheet Definition : A balance sheet is a crucial financial statement that provides a snapshot of a company’s financial position at a specific point in time. It showcases the relationship between a business’s assets, liabilities, and equity, offering a comprehensive view of its financial health. This statement is one of the core documents used […]