Glossary
Welcome to SFNet's Secured Finance Glossary of industry terms. Currently the SFNet Glossary has over 400 industry terms and definitions. You can search specific terms in the search tool above, or use the alpha tool below and progress on the paginations.
In This Section
Obsolete Inventory 
Is a term that refers to inventory that is at the end of its product life cycle. This inventory has not been used or sold for a long period of time and is not expected to be sold in the future. This inventory has to be written down.
Off-Site Inventory
Inventory that is not stored at the owner's facilities and instead somewhere else. The inventory could be Consigned to another party or stored at a third party facility.
Offset
When customer A purchases something from customer B and customer B purchases something from customer A. The balances are subtracted from (offset against) the other, leaving only the net difference to be paid. Sometimes called a "contra relationship."
Open Market Sale
The sale of goods and services are governed by forces of supply and demand.
Operating Lease
Is a contract that allows the use of an asset, but does not give rights of ownership of the asset, for a particular period which is shorter than the economic life of the asset.
Opportunity Cost
This refers to a benefit that a person could have received, but gave up, to take another course of action.
Orderly Liquidation Value
An estimate of the gross amount that a tangible asset would get in an auction style liquidation with the seller needing to sell the asset on an as-is, where is basis.
Over Eligible Days
The period of time at which an invoice become ineligible for advance purposes. Asset based lender typically limit eligibility on invoices to a specific amount of days.
