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Reference dictionary with key terms in the collections management and commercial credit risk sector.
- Aging
- Analysis of the age of outstanding invoices, grouped by time buckets (30, 60, 90, 120+ days). Helps identify delinquency trends and prioritize collection actions.
- DSO (Days Sales Outstanding)
- Financial indicator measuring the average number of days a company takes to collect its invoices. Calculated by dividing accounts receivable by average daily revenue.
- Dunning
- Systematic process of sending payment reminders and demands to delinquent customers. May include emails, letters, calls and progressive escalations.
- Write-off
- Accounting cancellation of a debt deemed uncollectable. Recorded as a loss in the income statement when all recovery avenues are exhausted.
- Risk scoring
- Numerical score evaluating a customer's probability of default. Combines internal data (payment history) with external data (credit bureaus).
- Payment order procedure
- Simplified judicial process for claiming liquid, due and payable monetary debts. Allows obtaining an enforceable title quickly.
- ADR (Alternative Dispute Resolution)
- Alternative Dispute Resolution methods. Includes mediation, arbitration and conciliation as alternatives to litigation for resolving debt disputes.
- ETL (Extract, Transform, Load)
- Process of extracting data from a source system, transforming it according to business rules and loading it into the target system. In FK, enables automated integration with ERPs and other systems.
- Credit insurance
- Policy protecting a company against customer default. Insurers assess each buyer's risk and set coverage limits.
- Credit coverage
- Maximum insured amount under a credit insurance policy for a specific customer. Determines how much the company is protected in case of default.
- Exposure
- Total outstanding debt (pending invoices) with a customer or business group. Compared against coverage to assess risk.
- SLA (Service Level Agreement)
- Service level agreement defining commitments for availability, response time and technical support quality.
- SSO (Single Sign-On)
- Authentication mechanism allowing users to access multiple applications with a single corporate credential (LDAP, Active Directory, OAuth).
- Smart Collections
- Module for rule-based automated collection strategies. Defines action sequences (email, letter, call) that execute automatically based on debtor profile.
- Plugin
- Installable extension that expands FK functionality. Plugins are installed from a centralized catalog and automatically create new capabilities integrated into the platform.
- Debtor registry
- Public or private database recording individuals or companies with unpaid debts. Inclusion can have reputational consequences and hinder credit access.
- Amicable phase
- First stage of collections management where debt recovery is attempted through cordial communications: reminders, calls and direct negotiation with the debtor.
- Pre-litigation
- Intermediate phase between amicable management and litigation. Includes formal demands, certified letters and threat of legal action to pressure payment.
- Payment installment plan
- Formal agreement with the debtor to divide a debt into periodic installments with a defined payment schedule.