Glossary
Welcome to ADVANZ’s Resources hub. Here you’ll find our latest blogs, guides, glossary and answers to all your questions.
A large business or organisation that acts as the primary supplier or buyer in a supply chain. In ADVANZ, anchors set the terms for credit and repayment for their buyers.
A financing arrangement where no interest or fees are charged during the interest-free period, allowing businesses to purchase goods with deferred payments at no extra cost.
The duration set by the anchor (supplier) during which no interest is charged on the outstanding credit amount. The buyer must repay within this period to avoid interest charges.
The maximum amount of credit that a buyer can access through the ADVANZ platform, determined by factors like credit history and business performance.
Penalties applied to the buyer for failing to repay the credit within the interest-free period, calculated as a percentage of the overdue amount.
The digital interface where buyers can manage their credit line, track transactions, and make repayments on the ADVANZ platform.
The total duration during which the buyer can hold credit before it becomes overdue, with a maximum limit of 90 days.
A flexible payment option offered by ADVANZ, allowing buyers to repay their credit in multiple instalments—weekly, half-monthly, or monthly.
The set of requirements a buyer must meet to qualify for the ADVANZ credit line, including credit history, business performance, and relationship with the supplier.
Refers to the fully digital process of applying, receiving, and managing credit on the ADVANZ platform, ensuring ease and efficiency for users.
A financing solution that optimises cash flow by allowing businesses to extend their payment terms or receive early payments at reduced costs.
Micro, Small, and Medium Enterprises; businesses that operate at a smaller scale, typically with limited revenue and employees, often targeted for financing solutions like ADVANZ.
The timeline or plan for repaying the credit used, which can vary from 30 to 90 days, depending on the terms agreed with the anchor.
A reduction in the total payable amount offered by the lender to the anchor as an incentive for facilitating early or advance payment of a due invoice.
A business or organisation that sells goods or services to buyers. On the ADVANZ platform, suppliers (anchors) offer lines of credit to their buyers.
A formal application made by the buyer on the ADVANZ platform to access credit from a supplier for purchasing goods or services.
Failure to repay the credit amount within the agreed credit period, which results in penalties or legal consequences.
Notifications sent to buyers by the ADVANZ platform to remind them of upcoming payment due dates, helping them avoid overdue charges.
The operational funds needed to manage the day-to-day expenses of running a business, which ADVANZ aims to support through zero-cost credit.
Short for Financial Technology, fintech refers to technology-driven innovations in financial services. ADVANZ is an example of a fintech platform offering credit solutions to businesses.
A financial solution where businesses use their outstanding invoices to access immediate cash flow. ADVANZ provides an alternative to this by offering a line of credit directly.
A numerical value representing the creditworthiness of a buyer, based on their payment history and financial performance. It is used to assess eligibility for credit.
The process of verifying a buyer's identity and business information online through Know Your Customer (KYC) procedures, ensuring compliance with regulatory requirements.
A financing model where the anchor or supplier initiates the credit terms and repayment schedules, providing the buyer with a line of credit to purchase goods.
A feature that protects buyers from exceeding their credit limit, preventing transactions that would lead to penalties or additional charges.
The date by which the buyer must repay the credit amount to avoid interest charges or overdue penalties.
The process of matching a purchase order to an invoice to ensure that goods and services were delivered as agreed, typically handled through the ADVANZ Buyer Portal.
Offering a reduced price for early repayment of credit, often arranged between the buyer and supplier as part of the credit agreement.
An arrangement where the buyer can extend their repayment period beyond the original credit term, often at a cost of additional interest or fees.
Strategies employed by the ADVANZ platform to minimize the risk of default, including stringent eligibility criteria and automated monitoring of payment behavior.
A form of financing where the buyer is allowed to purchase goods or services on credit from the supplier and repay at a later date.
An electronic method used to sign documents securely online, commonly used during the credit application process on the ADVANZ platform.
A buyer's ability to repay a loan or line of credit, assessed by the ADVANZ platform using factors like payment history, business revenue, and supplier relationships.
A short extension beyond the due date during which the buyer can make payments without incurring penalties or additional interest.
A flexible system where the discount rate on early repayment increases the sooner the buyer repays within the agreed credit period.
Money owed to a business by its buyers, typically referring to credit sales that are yet to be collected. ADVANZ helps businesses manage this through credit solutions.
Credit or loan arrangements that must be repaid within a short period, usually up to 90 days. ADVANZ specialises in providing such short-term credit to buyers.
The final date by which a buyer must pay the amount owed to avoid overdue charges or penalties.
A formal contract between the buyer and supplier outlining the terms of purchase, including the interest-free period and repayment terms, facilitated by ADVANZ.
The availability of liquid assets (cash or easily convertible assets) that a business can use to meet its short-term obligations. ADVANZ helps improve liquidity by offering credit lines.
The digital infrastructure through which buyers make payments via the ADVANZ Buyer Portal, ensuring secure and fast transactions.
The percentage of the buyer's total available credit that has been used. A lower credit utilisation rate is generally considered better for maintaining creditworthiness.
A type of financing where the supplier does not have the right to pursue the buyer for any outstanding credit, as the risk is transferred to the financing institution. ADVANZ may offer non-recourse solutions in specific cases.
The total amount of risk that a buyer or supplier faces in relation to their outstanding credit, which can impact their future eligibility for financing.
A model where the cost of credit is determined by the buyer's risk profile. However, ADVANZ offers a zero-cost line of credit during the interest-free period, regardless of the buyer’s risk.
A flexible loan arrangement where a buyer can borrow up to a predetermined limit and repay the amount over time, as offered by ADVANZ to facilitate purchases from suppliers.
A rating that indicates the credit risk associated with a buyer, impacting their ability to secure financing and the terms they receive from suppliers.
The conditions under which the buyer agrees to make payments to the supplier, including the time frame, amount, and any discounts for early payment.
A third-party account where funds are held temporarily until the conditions of a transaction are met. This ensures payment security, though not commonly used in ADVANZ transactions.
The ability to track every aspect of the supply chain, from purchase orders to delivery and payment. ADVANZ enhances supply chain visibility through its platform, allowing buyers and suppliers to track credit usage and payments.