Reserve factoring transaction definition
Reserve factoring transaction means a factoring transaction where, upon receipt of a legally enforceable claim for payment, a financer pays an original advance amount to the recipient that is less than the purchase price and holds the difference between the original advance amount and the purchase price to secure the financer against deficiencies on amounts paid by the account debtor on the legally enforceable claim or other legally enforceable claims assigned or to be assigned by the recipient to the financer.
Reserve factoring transaction means a factoring transaction where, upon receipt of a legally enforceable claim for payment, a financer pays an original advance amount to the recipient that is less than the purchase price and holds
Reserve factoring transaction means a factoring transaction, where upon receipt of a legally enforceable claim for payment, a finance company advances an original advance amount to the recipient that is less than the face value of the legally enforceable claim minus the factoring fee, and where, upon timely payment in full of the legally enforceable claim, the finance company pays the recipient an amount equal to the face value of the legally enforceable claim minus the original advance amount and the factoring fee.