Some common terms you may run across when creating or working with your credit policy are listed here with the definitions for you. These are the words I am most asked about so I thought they would be helpful here. I also have more information about this in "Become the Squeaky Wheel".
(DBT) Days Beyond Terms: Days beyond terms is the average number of days a firm pays its bills past the invoice due date. The DBT is weighed by the dollar amount of each account. The prediction is a forcast of the the DBT for 60 days into the future. It is based on the trend in DBT, the type of industry, derogatory public record information, collection accounts, number of inquiries, years in business and other factors.
DBT NORMS: DBT Norms let you compare the company's DBT against the average DBT for other businesses in the same industry and the average DBT for all industries. The three most common purchasing terms for the company's industry are also listed.
DBT RANGES: DBT Range is based on current payment behavior indicated where the business' current DBT alls in comparison to other businesses in the U.S. and shows the percentage of U.S. companies that fall into four DBT ranges (1-15, 16-50, 51-90 and over 90).
BANKRUPT: Insolvent, gone belly up, ruined, wiped out, broke, buseted, penniless, in the red.
COLLECT: Accumulate or assemble, gather, harvest, reap, amass, hoard, save, round up, pile up, squirrel away, compile, congregate, flock, group, muster, convene, meet, cluster.
COLLECTION: Accumulation, mass, group, assortment, assembly, pile, gathering, stockpile, store, hoard, cluster.
CREDIT: Belief, trust, faith, honesty, credibility, praise, attribute, debt on account, deferred payment, charge time, installment plan.
DEBT: Obligation, liability, bill, debit, arrears, deficit, pledge, due, burden.
DEFAULT: Shirk, welsh, fail, stiff, skip out, run out on, dodge.
DUNNING: Letters that are sent from a collection agency on behalf of a creditor.
SKIPTRACING: A method a collection agency uses to find debtors who have moved or can no longer be reached at their billing addresses or phone numbers.
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