Vocabulary Words Every Collections Clerk Should Know

Bill

Definition: a statement of money owed

• He received a bill for his phone service.
• The bill was higher than expected.
• She paid the bill at the restaurant.

Bill in a sentence

Payment

Definition: Money given for goods or services.

• I made my payment for the concert tickets.
• The payment is due at the end of the month.
• We can process your payment online.

Payment in a sentence

Money

Definition: Paper or coins used to buy things.

• I need money to buy a new book.
• He saved his money for a new bike.
• We use money to pay for food.

Money in a sentence

Debt

Definition: Money owed to someone; an obligation to pay back.

• He is trying to pay off his debt.
• She learned about managing debt in finance class.
• Living within your means helps avoid debt.

Debt in a sentence

Collect

Definition: To gather items together.

• I like to collect stamps from different countries.
• She collects coins as a hobby.
• He wants to collect all the toy cars.

Collect in a sentence

Customer

Definition: A person who buys goods or services.

• The customer was happy with her purchase.
• They treat every customer with respect.
• She is a loyal customer at that store.

Customer in a sentence

Account

Definition: A record of financial transactions; a personal description of events.

• She opened an account at the bank.
• He shared his account of what happened.
• The account showed all his expenses.

Account in a sentence

Due

Definition: Expected or owed at a certain time; also refers to a requirement.

• The assignment is due on Friday.
• He was due for a check-up at the doctor.
• Understanding due dates helps with time management.

Due in a sentence

Receipt

Definition: A document acknowledging that something has been received, especially in transactions.

• He kept the receipt for his new shoes.
• She asked for a receipt after buying the groceries.
• Understanding receipts is important for budgeting.

Receipt in a sentence

Service

Definition: The action of helping or doing work for someone.

• The restaurant provides excellent service to its customers.
• We offer a service to help students with their studies.
• Volunteering is a way to give back to the community through service.

Service in a sentence

Balance

Definition: A state of stability; an equal distribution of weight or amount.

• It's important to maintain a balance between work and play.
• She tries to balance her studies and hobbies.
• The scale showed a perfect balance.

Balance in a sentence

Cash

Definition: Money in the form of coins or banknotes.

• I prefer to pay in cash.
• He kept some cash in his wallet.
• They accepted cash for the ticket.

Cash in a sentence

Credit

Definition: Recognition or acknowledgment, often for work done.

• She received credit for her hard work.
• You need to give credit to the author.
• He got credit for his contribution to the project.

Credit in a sentence

Charge

Definition: To give electrical energy to a device or to ask for payment.

• He will charge his phone overnight.
• The store will charge $20 for the service.
• She forgot to charge her tablet before the trip.

Charge in a sentence

Late

Definition: Arriving after the expected or scheduled time.

• She was late to class because of traffic.
• He often stays up late to finish his homework.
• Being late for appointments can be frustrating.

Late in a sentence

Reminder

Definition: A note or prompt to help someone remember something.

• She set a reminder on her phone for the meeting.
• He wrote a reminder to bring his lunch.
• Understanding reminders can help with organization.

Reminder in a sentence

Record

Definition: To capture or store information; a written account of something.

• I will record the lecture for later.
• They set a new record in the race.
• She likes to record her thoughts in a journal.

Record in a sentence

File

Definition: A collection of documents or data stored together.

• I need to organize my files on the computer.
• He saved the file in a new folder.
• Please check the file for the latest updates.

File in a sentence

Help

Definition: To assist someone with something.

• Can you help me with my homework?
• She helped her mother in the kitchen.
• He always helps his friends.

Help in a sentence

Answer

Definition: A response to a question or problem.

• Please provide an answer to the math question.
• She raised her hand to give the answer in class.
• Understanding how to answer questions is essential for learning.

Answer in a sentence

Client

Definition: A person or organization that receives services from a professional.

• The lawyer met with a client to discuss the case.
• She is a client at the local hair salon.
• The company values every client highly.

Client in a sentence

Invoice

Definition: A document that itemizes and records a transaction between a buyer and a seller.

• The company sent an invoice for the services provided.
• She checked the invoice for any errors before paying.
• An invoice is usually due within 30 days.

Invoice in a sentence

Amount

Definition: A quantity of something, especially when referring to money or measurements.

• The amount of sugar in the recipe is two cups.
• He saved a large amount of money for his trip.
• Understanding amounts helps in budgeting and measurements.

Amount in a sentence

Transaction

Definition: an instance of buying or selling something

• The transaction was completed online.
• He received a receipt for the transaction.
• They tracked the transaction in their records.

Transaction in a sentence

Statement

Definition: A clear expression of something in speech or writing.

• The teacher asked for a statement about the project.
• He made a statement about his favorite book.
• She wrote a statement to explain her opinion.

Statement in a sentence

Check

Definition: To look at something to verify its accuracy; a written order for payment.

• Please check your answers before submitting.
• He wrote a check to pay for the groceries.
• She will check the schedule for the meeting.

Check in a sentence

Debit

Definition: An entry recording an amount owed or payment made, often in a bank account.

• The debit from my account was for groceries.
• She checked her bank statement for recent debits.
• Understanding debits is important for managing money.

Debit in a sentence

Collection

Definition: A group of items gathered together.

• She has a beautiful collection of stamps.
• His collection of books is impressive.
• The museum has a collection of ancient artifacts.

Collection in a sentence

Fees

Definition: Charges or payments for services or products.

• The fees for the class were higher than expected.
• She paid the fees for her school trip.
• Understanding the fees involved is important for budgeting.

Dispute

Definition: A disagreement or argument about something.

• They had a dispute over the game rules.
• The dispute was resolved after a discussion.
• It's important to handle a dispute calmly.

Dispute in a sentence

Terms

Definition: The specific conditions or rules of an agreement.

• The terms of the contract must be followed.
• She agreed to the terms before signing.
• Understanding terms helps in negotiations.

Terms in a sentence

Agreement

Definition: A mutual understanding or arrangement between parties.

• They reached an agreement after much discussion.
• The agreement was signed by both sides.
• He made a written agreement with the landlord.

Agreement in a sentence

Contact

Definition: To communicate or connect with someone.

• I will contact you via email later.
• Please keep in contact with your friends.
• Make sure to contact the teacher if you have questions.

Contact in a sentence

Receivable

Definition: An amount of money owed to a company or individual.

• The company has many receivables from clients.
• They monitor their receivable accounts closely.
• Managing receivables is essential for cash flow.

Receivable in a sentence

Outstanding

Definition: Exceptionally good or excellent; prominent.

• He received an award for his outstanding achievements.
• Her outstanding performance impressed the judges.
• There were many outstanding projects submitted for review.

Outstanding in a sentence

Adjustment

Definition: A change made to improve or adapt to a situation.

• She made an adjustment to her schedule to fit in more study time.
• He needed an adjustment to his glasses for better vision.
• Understanding adjustment helps in adapting to new environments.

Adjustment in a sentence

Reconciliation

Definition: The process of restoring friendly relations or resolving differences.

• They sought reconciliation after their argument.
• Reconciliation is important for maintaining friendships.
• The reconciliation of their views led to a better understanding.

Reconciliation in a sentence

Debtor

Definition: A person or entity that owes money to another party.

• The debtor promised to repay the loan by next month.
• Understanding the rights of a debtor is important in finance.
• He was listed as a debtor in the financial records.

Debtor in a sentence

Creditor

Definition: a person or organization to whom money is owed

• The bank is the creditor for the loan.
• She spoke with her creditor about payment options.
• Understanding creditor helps in financial literacy.

Creditor in a sentence

Late Fee

Definition: A charge for not paying a bill or returning an item on time.

• He forgot to pay the bill and incurred a late fee.
• The library charges a late fee for overdue books.
• She was upset about the late fee on her account.

Late Fee in a sentence

Authorization

Definition: Official permission to do something.

• You need authorization to access the building.
• She received authorization to conduct the research.
• The school required authorization for the trip.

Authorization in a sentence

Documentation

Definition: The act of providing written evidence or records; materials that provide information.

• Proper documentation is important for legal processes.
• She prepared the documentation for the project.
• The documentation helped clarify the procedures.

Documentation in a sentence

Compliance

Definition: Following rules or standards.

• The company is in compliance with safety regulations.
• They ensured compliance with the new laws.
• She checked for compliance with the guidelines.

Compliance in a sentence

Policy

Definition: A plan or course of action adopted by an organization.

• The school has a policy on bullying.
• Their policy helps protect the environment.
• She explained the new policy to the staff.

Policy in a sentence

Procedure

Definition: a series of steps to accomplish a task

• Follow the procedure to complete the assignment.
• The procedure for the experiment was explained.
• He learned the procedure for making cookies.

Procedure in a sentence

Audit

Definition: An official examination of accounts or financial records.

• The school will conduct an audit of its budget.
• An audit helps ensure that everything is accurate.
• They hired a company to perform the audit for transparency.

Audit in a sentence

Report

Definition: A spoken or written account of something.

• I need to write a report about my science project.
• The news report covered the recent event.
• He will report the findings to the class.

Report in a sentence

Summary

Definition: A brief statement that gives the main points of something.

• He wrote a summary of the chapter for homework.
• The summary helped her understand the story better.
• She gave a quick summary of the meeting.

Summary in a sentence

Inquiry

Definition: the act of asking questions to gain information

• The teacher encouraged inquiry during the lesson.
• Her inquiry into science led to many discoveries.
• Understanding inquiry promotes critical thinking.

Inquiry in a sentence

Follow-up

Definition: an action that comes after an initial action; checking on something

• She scheduled a follow-up appointment with the doctor.
• The teacher did a follow-up on the students’ progress.
• A follow-up email can help clarify any questions.

Escalation

Definition: a rapid increase or intensification

• The escalation of the issue required immediate attention.
• They were concerned about the escalation of violence.
• Understanding escalation helps in conflict resolution.

Escalation in a sentence

Arrears

Definition: Money that is owed and not paid on time.

• He was in arrears on his rent payments.
• They had to settle their arrears before moving.
• The company handled the arrears efficiently.

Arrears in a sentence

Delinquency

Definition: Behavior that is illegal or antisocial, often associated with youth.

• Juvenile delinquency is a concern in many communities.
• They discussed the causes of delinquency in class.
• Understanding delinquency helps in prevention strategies.

Delinquency in a sentence

Liability

Definition: the state of being responsible for something, especially in law

• He accepted liability for the accident.
• The company has a liability to its employees.
• Understanding liability is important in business.

Liability in a sentence

Indemnity

Definition: Security or protection against a financial loss or damage.

• The policy offered indemnity against theft.
• They sought indemnity for damages caused by the storm.
• Indemnity clauses are common in contracts.

Indemnity in a sentence

Forbearance

Definition: Patience and self-control in difficult situations.

• Her forbearance during the argument was admirable.
• He showed great forbearance when dealing with stress.
• Forbearance is essential when working with young children.

Forbearance in a sentence

Collateral

Definition: An asset used to secure a loan or guarantee repayment.

• He offered his car as collateral for the loan.
• Collateral is important for reducing lender risk.
• The bank required collateral for the mortgage.

Collateral in a sentence

Insolvency

Definition: The state of being unable to pay debts owed.

• The company faced insolvency after poor sales.
• Insolvency can lead to bankruptcy.
• He learned about insolvency during his finance class.

Insolvency in a sentence

Liquidation

Definition: The process of selling assets to pay debts.

• The liquidation of the store was sad for the community.
• They announced the liquidation of the business last week.
• Liquidation sales often have deep discounts.

Liquidation in a sentence

Garnishment

Definition: A legal process allowing a portion of a person's earnings to be withheld for debt repayment.

• The court ordered a garnishment of his wages.
• She received a notice about wage garnishment.
• Garnishment can affect a person's income.

Garnishment in a sentence

Creditworthiness

Definition: an assessment of someone's ability to repay debts

• Creditworthiness is important for loan approval.
• They checked his creditworthiness before granting credit.
• Understanding creditworthiness helps in financial decisions.

Creditworthiness in a sentence

Remittance

Definition: A sum of money sent as payment or support.

• She sent a remittance to her family overseas.
• The remittance arrived just in time for the holidays.
• He relies on monthly remittances from his job.

Remittance in a sentence

Default

Definition: A failure to fulfill an obligation, especially in financial terms.

• The borrower faced default after missing several payments.
• Defaulting on a loan can hurt your credit score.
• It's important to understand the consequences of default.

Default in a sentence

Judgment

Definition: The ability to make considered decisions or come to sensible conclusions.

• Her judgment about the situation was very wise.
• He made a quick judgment based on the facts.
• Understanding judgment helps in decision-making processes.

Judgment in a sentence

Settlement

Definition: An official agreement or a community where people live.

• The peace settlement ended the conflict.
• They moved to a new settlement in the countryside.
• The settlement was established many years ago.

Settlement in a sentence

Amortization

Definition: The process of gradually paying off a debt over time.

• Amortization schedules help manage loan payments.
• He learned about amortization in finance class.
• Understanding amortization is important for budgeting.

Amortization in a sentence

Foreclosure

Definition: The legal process where a lender takes possession of a property.

• Due to missed payments, his house faced foreclosure.
• They avoided foreclosure by refinancing their mortgage.
• The foreclosure process can be stressful for families.

Foreclosure in a sentence

Negotiation

Definition: A discussion aimed at reaching an agreement.

• The negotiation between the two companies took weeks.
• They entered into negotiation to settle the dispute.
• Successful negotiation requires good communication skills.

Negotiation in a sentence

Litigation

Definition: The process of taking legal action; a lawsuit.

• Litigation can be expensive and time-consuming.
• They decided to avoid litigation and settle.
• She studied litigation in law school.

Litigation in a sentence

Fiduciary

Definition: A person entrusted with the responsibility to manage someone else's money or assets.

• A fiduciary must act in the best interest of their clients.
• He serves as a fiduciary for the family trust.
• Understanding fiduciary duties is essential in finance.

Fiduciary in a sentence

Escrow

Definition: A financial arrangement where a third party holds funds until conditions are met.

• The house sale was placed in escrow until closing.
• He learned about escrow during the home-buying process.
• Understanding escrow is important for real estate transactions.

Escrow in a sentence

Underwriting

Definition: the process of evaluating risk for insurance

• Underwriting is essential for approving insurance policies.
• He works in underwriting for a large company.
• Understanding underwriting helps in managing risks.

Underwriting in a sentence

Bankruptcy

Definition: A legal process for individuals or businesses that cannot pay their debts.

• The company filed for bankruptcy after major losses.
• He learned about bankruptcy laws in his business class.
• Bankruptcy can provide relief but has long-term effects.

Bankruptcy in a sentence

Arbitration

Definition: A process where a neutral third party helps resolve disputes between two sides.

• Arbitration is often used to settle business disagreements.
• They agreed to arbitration to avoid going to court.
• Understanding arbitration can help in conflict resolution.

Arbitration in a sentence

Solvency

Definition: The ability of an individual or organization to meet its long-term financial obligations.

• The company’s solvency was assessed during the audit.
• Maintaining solvency is crucial for business success.
• He learned about solvency in his finance class.

Solvency in a sentence

Covenant

Definition: A formal agreement or promise, often in legal terms.

• They signed a covenant to protect the environment.
• The covenant included rules for community living.
• Understanding the covenant is important for all members.

Covenant in a sentence

Lien

Definition: A legal right or interest that a lender has in the borrower's property, until the debt obligation is satisfied.

• The bank placed a lien on the house for the unpaid loan.
• She learned about liens in her business class.
• Understanding liens is important when buying a home.

Lien in a sentence

Subrogation

Definition: The legal right for one party to pursue a claim for damages after paying a debt or claim.

• Subrogation allows the insurance company to recover costs.
• He learned about subrogation in his law class.
• Subrogation is important in insurance claims.

Subrogation in a sentence