FACTOR KING® was established with a few simple goals in mind- combine "Old World Factoring" with "New Age Thinking". Our Mission to provide crucial funding to small and middle tier companies that may or may not have access to adequate bank financing is responsible for our success. Through our leverage of various technologies our systems and procedures provides fast and accurate factoring, simple order processing, and ease of use allowing our clients to focus on building their core business. Client growth is how we measure our own success. Become part of FACTOR KING® today!!
Glossary
Factoring Terms
FACTORING TERMS
There are currently 12 Factoring Terms in this directory beginning with the letter R.
R
Rate of Return
Rate of Return is the gain or loss generated from an investment over a specified period of time. Rate of return is also referred to as total return and it includes the change in the value of a security plus all Interest, Dividends and capital gains distributions generated by holding that security.
Receivership
A remedy that may be granted by a court of law in an appropriate case, whereby a person is appointed as a receiver to possess, manage, and protect money or property until the litigation involving the property is concluded.
Records Search
A review of financing statements or liens on file with the Secretary of State and/or County Clerk; discloses any existing pledge of a business' s account receivable, inventory, or machinery and equipment.
Recourse
In this type of factoring, the risk of customer non-payment remains with the client. If the client's customer is financially unable to pay the money due under the invoice, the factor has recourse against the client for that money. The factor is protected against customer non-payment.
Recourse Factoring
Factoring where the funding source purchases receivables and withholds a reserve in case of non-paym
Recourse Period
This is the length of time in which factor will fund a purchased account receivable before the factor will return a non-performing or unpaid account receivable to the client.
Replevin
A legal proceeding in court to seize property (other than real estate) given as security for a debt that is in default.
Reserve
Refers to the amount withheld by the factor net of the advance. Can be used as a financial cushion to protect against shortages, disputes between the client and the customer or bad debt losses due to customer non-payment. The reserve should be released to the client after the customer has paid the factor the total money due on the invoice.
Reserve Account
The account set up to track funds owed to the client from the collection of factored invoices. The reserve account balance can be calculated by taking the invoice face value and subtracting the initial advance, the factor's earned fees, and any charge backs and administrative charges.
