|
Invoice Factoring Glossary by Alpha
# |
A |
B |
C |
D |
E |
F |
G |
H |
I |
J |
K |
L |
M |
N |
O |
P |
Q |
R |
S |
T |
U |
V |
W |
X |
Y |
Z
Rate of Return
The yield on equity or invested capital.
Rebate
The return of funds issued to the client by a factor from the reserve account.
Recourse
A form of factoring where the client is liable for payment in the event the customer does not pay.
Reserve Account
An account established by the factor to track funds owed to a client as factored invoices are paid. The account amount equals the invoice face value minus the advance, the factor's fees, charge backs and administrative charges.
Revolving Credit Arrangement
Similar to a line of credit, this short-term financing is a prearranged bank loan that is generally open for two or more years.
|
