What is Contra 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.

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What is Invoice Factoring?

What is Invoice Factoring?

Invoice factoring is a financial transaction and a type of debtor finance. In an invoice factoring agreement, a business sells its accounts receivable (invoice) to…
Three Common Invoice Factoring Questions Answered

Three Common Invoice Factoring Questions Answered

Invoice factoring may be a relatively new concept to some, but it’s actually been around for centuries as a financial practice. It’s used quite frequently in the transportation…
What Is Invoice Factoring Without Recourse

What Is Invoice Factoring Without Recourse

Factoring accounts receivables to gain immediate access to working capital is a sound business decision. The process of selecting the right factoring company for your…

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