Collection fractions

The percentage of a given month's sales collected during the month of sale and each month following the month of sale.

Similar financial terms

Collection float
The negative float that is created between the time when you deposit a check in your account and the time when funds are made available.

Collection policy
Procedures followed by a firm in attempting to collect accounts receivables.

Receivables balance fractions
The percentage of a month's sales that remain uncollected (and part of accounts receivable) at the end of succeeding months.

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Franchise

The right to sell products or services under a corporate name or trade mark (established by someone else). This right is usually purchased for cash in addition to a royalty fee on, or a percentage of, all sales.


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