Factoring Company- Glossary > Factoring Terms > Factors Reserve


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A deposit maintained by the factor, to guard against disputes between the client and the customer, and to guard against bad debt losses due to customer non-payment. This is the money retained by the factor when the advance is sent to the client. The Reserve is sent to the client after the customer has paid the factor the money due on the invoice.

Last updated on September 26, 2009 by FACTOR KING, LLC