A/R Finance & Factoring Terms GLossary

What isContra Account

A Contra Account, in terms of A/R financing or Invoice Factoring, is when the Factoring Company’s Client and their Customer (the Account Debtor) each owe the other monies. For example, slotting or advertising fees in retailing. This must be disclosed immediately to the working capital provider so the borrowing base or availability can be adjusted accordingly.

Audio Definition/Pronunciation

OTHER TERMS BEGINNING WITH "C"

Back to Top

Best Factoring Company

Get Started Immediately