Commercial Collections Glossary

A balance both parties impliedly accept as correct by statements/invoices and silence or partial payment.

A debtor's written or recorded admission that a sum is owed; may restart statutes in some jurisdictions.

Third-party firm engaged by a creditor to recover commercial receivables.

Payment agreement achieved without litigation or judgment.

Reversal of a previously applied credit/settlement due to breach of terms (e.g., missed installment).

Percentage of amounts collected, remitted to the agency; WCS prioritizes net back, not headline fee.

Formal notice seeking payment or cure of breach; often prerequisite to suit under contract.

Debtor contests liability in whole/part; classify as pricing, quality, delivery, contract, tax, or metering (usage).

Structured reminder sequence before third-party placement (WESC = early-stage cadence).

Time allowed to cure default without acceleration or penalty.

Separate promise to pay debtor's obligation on default.

Dollars returned to creditor after fees/charges; the KPI that actually funds operations.

Transmission of an account to an agency/attorney for collection.

Set of documents proving liability (MSA/SOW/PO/invoices/receipts/usage logs).

Funds forwarded by counsel/agency to creditor after clearance and fee application.

Negotiated lump-sum resolution for less than face, often tied to release of claims.

Written agreement entered with a court; if debtor defaults on plan, judgment can be entered.

Advanced court costs + suit fee + commission terms requested by counsel to initiate litigation.

WCS Early-Stage Collect: brand-safe pre-collections cadence that seeks payment to the client prior to third-party action.

On default, full balance becomes immediately due.

Court determination that a sum is owing (with interest/costs per statute/contract).

Sworn statement used for motions (e.g., default).

Court-ordered seizure/freeze of assets pending outcome.

Federal processes for liquidation or reorganization; triggers automatic stay.

Pleading and notice that commence a civil action.

Judgment entered when defendant fails to appear/answer.

Enforcing an out-of-state/country judgment in the debtor's forum.

Post-judgment order to withhold wages/accounts; consumer wage rules vary by state; commercial bank levy often available.

Encumbrance on debtor's property arising from judgment recording.

Sheriff/marshal enforces judgment against assets.

Security interest in personal/real property securing payment.

ADR processes sometimes mandated by contract before suit.

Court's authority over parties and proper forum; often set by contract.

Avoidable payment made shortly before filing that prefers one creditor.

Deadline to sue on a claim (varies by claim type and state).

Illegal interest; commercial claims typically rely on contract/statute for lawful rates.

Buckets categorizing receivables by days outstanding.

Write-off of uncollectible receivables; reduces income.

Measures how efficiently credit/collections convert A/R to cash over a period.

Document reducing a customer's balance due (returns/allowances).

Rules for extending credit, setting limits, and escalating delinquency.

Average days to convert credit sales to cash.

Breaks ROE into margin × turnover × leverage to show how A/R discipline drives value.

Taxonomy to classify root cause (pricing, receipt, PO mismatch, etc.).

Buyer's authorization to purchase; drives 2/3/4-way match.

AP control that requires match of PO, receipt (goods/services), and invoice before payment.

Accounting treatment for uncollectible or partially collectible balances.

Payment blocked pending receipt, PO change, supplier record update, or dispute resolution.

Insurance proof required for onboarding/continued vendor eligibility.

Record of delivery/receipt used in matching flows.

Vendor onboarding data (banking, tax forms W-9/W-8BEN-E, addresses, ownership).

Buyer platforms where invoices are submitted/approved—frequent source of delay.

Service level agreement, statement of work, master services agreement—the contract framework governing delivery, billing, and remedies.

Bank-to-bank transfer; lower cost, reversible in limited windows.

Two-step card flow: authorization then capture/settlement.

Cardholder disputes a transaction through issuer; documentation essential.

Low-scope payment card compliance when using hosted/iframe solutions; reduces audit burden.

Usage beyond contracted threshold; common dispute in consumption-based models.

Synchronizing multiple subscriptions to a single expiration date; creates large, lumpy invoices.

Monthly/Annual Recurring Revenue; the north star metric for subscription businesses.

Mid-term addition of licenses; may be billed separately or added to next renewal.

Charges tied to consumption (API calls, compute hours, storage); requires reliable metering.