Accredited investor: An individual or a business entity that is allowed to trade securities that may not be registered with financial authorities.
Angel investor: An individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity.
AML (Anti-Money Laundering): Laws, regulations and procedures intended to prevent criminals from disguising illegally obtained funds as legitimate income.
CDR (Call-Detail Record): A data record produced by a telephone exchange or other telecommunications equipment that documents the details of a telephone call.
Daily invoice: An invoice that contains the payment for all telephone exchanges made in a single day. It usually comes with a CDR.
Daily Master invoice: When fractional invoices are created because of the big amount on an invoice, the original daily invoice is called Daily Master invoice.
Debtor: The one who pays invoice. Hence for example the Mobile Operator. This is ultimately where the risk lies, they must pay invoice and we need insurance on these Debtors. (Invoice is paid into an account we have visibility on either our own account if they accept, or into an account in the name of the Seller which we view with Open Banking.) In factoring business, it is the ultimate company that pays invoice. Ideally a Tier1 Operator. In the diagram below, Vodafone is the debtor.
Factoring: Type of debtor finance in which a business sells its accounts receivable to a third party at a discount.
Fintech (Financial technology): The technology and innovation that aims to compete with traditional financial methods in the delivery of financial services.
Fractional Invoices: When a Daily Master invoice (see above) gets split into sub invoices, they are called fractional invoices. It is sometimes referred to as B2B invoicing.
KYC (Know Your Customer/Client): The KYC guidelines in financial services require that professionals make an effort to verify the identity, suitability, and risks involved with maintaining a business relationship. The procedures fit within the broader scope of a bank’s Anti-Money Laundering (AML) policy. In Lenderwize, we use Smartsheet for Sellers and Debtors. The more we know of each, the better. We need to be sure that we do insurance checks, AML checks, and a series of verifications in order to make sure we’re not working with suspicious entities. KYC related info is also included in Debtors table in Airtable.
Lender: Entities who fund the money for investment. They are Institutional Investor, or a Private High Net Worth who invest money to Lenderwize or directly to the Borrowers.
Master invoice: An invoice that contains the sum of all the daily invoices produced in a single payment period.
Peer-to-peer lending: Lending money to individuals/businesses through online services that match lenders with borrowers. Also called “social lending”.
Seller: The one who sells invoice. Hence the Aggregator. We buy his invoices and pay for that. He must give us visibility of the trades on a daily/weekly basis, which automatically get uploaded on our server. (The Seller is therefore the supplier of the Debtor.) In factoring business, this could be a company that borrow funds, or sell their invoices. They’re also referred to as “factoring partners”, and they’re the main **clients ****of Lenderwize. Usually the invoices are sent in the form of daily invoices. In the diagram below, LexicoTelecom will be the seller.
Supplier: The one who supplies telephone route to Lenderwize. The term is mainly used under Trading business.
Switch: The Telecom Wholesaler’s switch ensures the flow of calls, connected via IP access to both the client and supplier. It keeps track of CDR’s. It has a price matrix of up to 60.000 destinations (prefixes for Country code, Operator Fixed/Mobile lines, Area Code).
Trading: is the action of buying and selling Voice minutes. For example calls from the UK via Vodafone to Singapore terminated by Singtel. Lexico is trading minutes and buys from Singtel and sells to Vodafone.