Definition
Clearing is the process of settling and reconciling financial transactions between parties. Founders reach for it when a vague conversation needs a shared, specific meaning. Name it clearly, then let the next decision — a hire, a price, a test, or a pass — follow from that meaning.
In the room
How the word shows up in a real conversation.
Two cofounders disagree until they define Clearing. Once they agree it means “Process of settling and reconciling financial transactions between parties”, the argument becomes a decision.
Common mistake
Using Clearing as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.
See also
Clean room
Controlled environment with minimal contamination for manufacturing or research.
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Clearance sale
Retail promotion offering significant discounts to clear excess inventory.
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Clearinghouse
Financial institution that facilitates the clearing and settlement of transactions.
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Client
Customer or organization that receives services from a business or professional.
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