A/R Finance & Factoring Terms GLossary

What isFactoring Reserve

The first payment to your company, the Factoring Advance, is typically 80-90% of the invoice value and is made once the invoice is received and verified. As stated above, our goal at Paragon is to verify and fund the same day as invoice receipt (if before 10 am with a wire transfer to you by 4 pm). The remaining 10-20% is held in reserve (The Factoring Reserve) until the invoice is paid. Once the invoice is fully paid, the Factoring Reserve is rebated, less any Factoring Discount Fee.

Audio Definition/Pronunciation

OTHER TERMS BEGINNING WITH "F"

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