"A" credit customers:
Consumers with impeccable credit, who can obtain a loan from traditional lenders.

Acceleration Clause:
Language in a lease that secures payments for the full term of the lease.

Accounts Payable:
The amount of money a company owes for goods and services it has received; any outstanding debt that a company has.

Accounts Receivable:
A collection of a company's outstanding invoices (invoices which have not yet been paid by the company's customers).

Accounts Receivable Aging Report:
A report showing how long invoices from each customer have been outstanding.

Advance Rate:
The percentage of the face amount of an income stream that a funding source will advance to a client.

Amortization:
The gradual, systematic payment of a debt, such as a mortgage or other loan, in installments of principal and interest for a definite time, so that at the end of that time, the debt will have been paid in full.

Articles of Incorporation:
A document filed with a U.S. state by the founders of a corporation. After approving the articles, the state issues a Certificate of Incorporation; the two documents together become the Charter of Incorporation.

Asset:
Anything having commercial or exchange value that is owned by a business, institution or individual. A business' assets might include its real estate, equipment inventory, intellectual assets such as copyrights or trademarks, and accounts receivable.

Assignability:
The ability to assign (or sell) an income stream to another individual or business.

Assignee:
The person or business entity who is given, obtains, or buys the right to an asset.

Assignment:
The transfer of the rights, title or interest of any debt instrument that is properly owned by another party.

Assignor:
The person giving or selling an asset, and subsequently, forfeiting rights to that asset.

"B" through "D" credit customers:
These consumers have less than perfect to bad credit and usually cannot qualify for traditional financing. Also called sub-prime credit customers.

Bad Debt:
Any debt that is delinquent and has been written off as uncollectible.

Balance sheet:
A financial statement that shows a business' current financial condition, with assets on the left side and liabilities and net worth on the right side.

Balloon:
The balance of principal that is due and owing in its entirety at a specified point in time, but in any event, less than the time required to fully amortize the debt.

Bankruptcy:
A state of insolvency of an individual or organization. The inability to pay debts.

Beneficiary:
The person or party entitled to receive the benefits, or proceeds, of the life insurance policy upon the death of the insured person.

Bill of Lading:
A shipping document which gives instructions to the company transporting the goods.

Bill of Sale:
A document used to transfer the title of certain goods from seller to buyer.

Business-based income streams:
Cash flow instruments that are paid to a business by another business or government.

Cash flow:
The flow of cash through a business or household. 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.

Cash flow broker:
Professional whose primary purpose is to unite income stream sellers with funding sources. They may operate as referral sources or as the primary liaison for cash flow transactions.

Cash flow industry:
The buying, selling, and brokering of privately held debt in the secondary marketplace; the marketplace where businesses and individuals get help managing their cash flow needs.

Cash flow instrument:
Future payment or series of payments. Also called a debt instrument or income stream.

Cash flow specialist:
A cash flow professional who brokers cash flow transactions or buys cash flow instruments.

Cash flow transaction:
Occurs whenever a funding source pays cash to an individual or business in exchange for an income stream.

Chattel mortgage:
A mortgage on personal property, given to secure a debt. Typically used in the sale of a business. Also called a security agreement.

Collateral:
Something of value (land, a home, a car, etc.) that is pledged as security to ensure the payment of a debt. Collateral is promised to a lender until a loan is repaid. If the borrower defaults, the lender has the right, by law, to seize the collateral.

Collateral-based income streams:
Cash flow instruments that are secured by collateral.

Collectibility:
Refers to the funding source's ability to collect future income stream payments once they are purchased.

Commission:
Fee paid to a broker for executing or referring a cash flow transaction.

Consumer-based income streams:
Cash flows in which the party that owes payments is a consumer, a private individual.

Contingency-based income streams:
Cash flows in which the recipient is not necessarily legally entitled to receive payments, or in which the amount of the payment is uncertain or contingent upon outside factors.

Conversion:
The process of converting a qualified prospect into an active client.

Corporation:
A legal entity, chartered by a U.S. state or the federal government, and separate and distinct from the persons who own it. It is regarded by the courts as an artificial person; it may own property, incur debts, sue or be sued.

Creditor:
One who is owed payments on a debt by a debtor.

Debt instrument:
Future payment or series of payments, or a debt that one party owes to another party. Also known as income streams or cash flow instruments.

Debtor:
One who owes something and makes payments to a creditor.

Default:
The omission or failure to perform or fulfill a legal duty, obligation, or promise (i.e. to pay a debt).

Due diligence:
Exhaustive research on a transaction, income stream, client, and/or payor. Due diligence may involve credit checks, appraisals, UCC searches, lien searches, or on-site visits with clients.

Equity:
The value or interest an owner has in property over and above any indebtedness owed on the property.

Escrow:
The system by which money documents, personal property, or real property is held in trust for another party by a disinterested third party until the terms and conditions of the escrow instructions are completed or terminated.

Face value:
The current principal balance on an income stream.

Factor:
A funding source that specializes in funding accounts receivable.

Factoring:
The purchase of a business' accounts receivable at a discount.

Fictitious name:
A legal statement filed when a person uses a name other than his or her own to operate a business.

Foreclosure:
A legal proceeding in court to seize property given as security for a debt that is in default.

Funding source:
An individual investor or an investment company that buys income streams.

Government-based income streams:
Cash flows paid by a government entity, either directly or through an insurance company.

Hypothecation:
Borrowing funds from a lender, investing those funds in a debt instrument, and giving the lender a sec