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Glossary of Credit Management Terms. Letter
D
Days Sales Outstanding:
See D.S.O.
Debenture:
A document recording the indebtedness of
one party to the other, containing a promise to repay and, by way
of security for that promise, a floating charge over a company’s
assets.
Debt collection agency:
A company which operates a debt recovery
service for the recovery of overdue accounts, on behalf of clients.
Decree:
Scottish equivalent of an English Judgment.
Discretionary limit:
Under credit insurance this is the maximum
amount of business that can be transacted with any one buyer without
the formal approval of the insurer, subject to satisfactory credit
references being obtained.
Dividends:
The return paid to shareholders on their
investment. (Usually in the form of a bonus payment every six months).
Document of title:
A document enabling the person in possession
of it to deal with the property described in it in any way as if
they were the owner.
Dormant company:
A limited company that has never started,
or has ceased, its trading activities (e.g. a subsidiary transferring
its business to its parent or a fellow subsidiary), but has not
been dissolved. Annual returns are still filed, but the accounts
state that the company did not trade during the year. A company
is kept on the “live index” in this way, so that it
can be easily reactivated if it wants to start trading again in
the future. It is also known as a Shell
company.
D.S.O.:
Days sales outstanding; an average guide
to the length of time it takes a company to receive payment for
goods sold. It is a measurement obtained by calculating the number
of days’ or months’ sales that are owed to the company.
Due from group companies:
Amounts due from group companies within
the next 12 months e.g. repayment of a short-term loan.
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