reserve account definition

reserve account definition

Glossary: reserve account

Reserve Account is 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.

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Business Consulting

Definition: reserve account

Factoring provides cash to your business with no time delay from issuing invoices as well as sales ledger and collection services.

Accounts Receivables Financing (Factoring): The service is disclosed to your customer who typically receives a letter from the factor, or attached note to your invoice, containing payment instructions to the factor.

Factoring Glossary - Define: reserve account - 2004 HJ Ventures International, Inc.