Accounts Receivable (A/R): The money owed to a company by its customers for goods or services already delivered.
A/R Financing: A financial arrangement where a company obtains funds by using its accounts receivable as collateral for a loan or line of credit.
Factoring: A type of A/R financing where a company sells its accounts receivable to a third party (factor) at a discount in exchange for immediate cash.
Invoice: A document sent by a business to a customer specifying the amount due for products or services rendered.
Receivables Aging Report: A summary report that categorizes accounts receivable by the length of time they have been outstanding, helping businesses track overdue payments.
Advance Rate: The percentage of the face value of accounts receivable that a lender is willing to advance as a loan.
Recourse Factoring: A factoring arrangement in which the company retains the risk of non-payment and is responsible for repurchasing uncollectible accounts.
Non-Recourse Factoring: A factoring arrangement where the factor assumes the risk of non-payment and cannot require the company to repurchase uncollectible accounts.
Collateral: In the context of A/R financing, accounts receivable serve as collateral.
Discount Rate: The fee or interest rate charged by the lender or factor for providing A/R financing.
Debtor: The customer or client who owes money to a business for goods or services provided.
Collection Period: The average number of days it takes a company to collect payment on its accounts receivable.
Credit Limit: The maximum amount of credit a customer is allowed to have outstanding with a company.
Invoice Factoring: Another term for factoring, where invoices are sold to a factor to obtain immediate cash.
Accounts Receivable Turnover Ratio: A financial metric that measures how quickly a company collects payments from its customers.
Canadian Legal Cannabis Glossary:
Cannabis: A plant that includes marijuana and hemp, used for medicinal, recreational, and industrial purposes.
Marijuana: The psychoactive variety of cannabis containing high levels of THC, typically used for recreational purposes.
Hemp: A variety of cannabis with low THC content used for industrial purposes such as fibre, oil, and CBD production.
Cannabis Legalization: The process by which the Canadian government legalized the recreational use of cannabis for adults in October 2018.
Licensed Producer (LP): A company authorized by Health Canada to cultivate, process, and sell cannabis for medical or recreational use.
Cannabis Retailer: A business licensed to sell cannabis and cannabis-related products to consumers.
Cannabis Control Board: Provincial or territorial agency responsible for regulating and overseeing cannabis distribution and sales.
Cannabis Act: Canadian federal legislation that governs the production, distribution, and possession of cannabis.
Cannabis Excise Tax: A federal tax imposed on the sale of cannabis products in Canada.
Cannabis Dispensary: A retail store where cannabis and related products are sold to consumers.
THC (Tetrahydrocannabinol): The psychoactive compound in cannabis responsible for its intoxicating effects.
CBD (Cannabidiol): A non-psychoactive compound in cannabis known for its potential therapeutic benefits.
Cannabis Edibles: Food and beverage products infused with cannabis, legalized for sale in Canada in 2019.
Cannabis Strain: A specific variety or breed of cannabis with distinct characteristics such as aroma, flavour, and cannabinoid content.
Cannabis Concentrates: Extracted products with higher THC or CBD concentrations, including oils, shatter, and wax.
Cannabis Legalization Day: The date on which recreational cannabis use became legal in Canada, October 17, 2018.
Cannabis Retail Store Licensing: The process by which provincial authorities issue licenses to businesses to operate cannabis retail stores.
Cannabis Tracking System: A system used to trace the movement of cannabis from production to sale, ensuring regulatory compliance.
Cannabis Excise Stamp: A stamp affixed to legal cannabis products as proof of payment of the excise tax.
Cannabis Consumption Lounges: Licensed establishments where individuals can consume cannabis in a social setting.
