Fast Payment Of Reserve
From the factoring company’s view, each invoice that is factored, is an individual transaction. Therefore, once the full face value of the invoice has been recovered from the debtor, the Reserve is theoretically payable to the client immediately.
Some factoring companies will pay the Reserve to the client the same day. For smaller amounts, daily payments of the Reserve might not be administratively practical. In such cases a factoring company might pay the Reserve amount to a client weekly.
That’s not necessarily a bad thing. It could be agreed beforehand that if Reserve payments are made weekly, then they must be paid before payroll is due,
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