💡 Summary #
After your buyer pays the invoice in full, Factor & Fund releases your remaining reserve (the balance after your advance and factoring fee).
Reserves are typically paid out within 1–2 business days of payment confirmation, keeping your cash flow predictable and transparent.
⚙️ Understanding the Reserve #
When Factor & Fund advances funds, a small portion of each invoice is held as a reserve — usually 10–15%.
The reserve ensures that all payments clear correctly before the transaction is closed.
Example:
Invoice = $100,000
Advance = $90,000 (90%)
Reserve = $10,000 held until payment is received
Fee = $3,000 (3%)
→ Final release: $7,000
🧩 Reserve Release Process #
1. Buyer Payment Confirmed #
Your buyer pays Factor & Fund directly, as instructed in the Notification of Assignment (NOA).
We verify:
- Payment matches the correct invoice number
- No short payments or disputes
- Funds have cleared our bank
This typically takes 1 business day.
2. Settlement Calculation #
Our system automatically applies the factoring fee (e.g., 3% per 30 days) and prepares your settlement statement, showing:
- Gross payment amount
- Factoring fee
- Any other adjustments (if applicable)
- Net reserve balance owed to you
3. Reserve Wire Transfer #
Once verified and reconciled, the reserve balance is wired or ACH-transferred to your business account within 1–2 business days.
You’ll receive:
- A confirmation email
- A statement summarizing the transaction
📊 Example Timeline #
| Event | Action | Timeline |
|---|---|---|
| Invoice factored | You receive 90% advance | Day 1 |
| Buyer payment clears | Funds received by Factor & Fund | Day 30–60 |
| Reserve released | Remaining balance sent to you | 1–2 days after payment |
✅ What Affects Timing #
- Buyer payment delays or short payments
- Bank holidays or weekend processing
- Buyer paying via check instead of wire
- Active disputes or adjustments
🟦 Once cleared, Factor & Fund releases reserves immediately — never held longer than necessary.
❓ FAQ #
Can I see my reserve balance anytime?
Yes. You’ll receive a detailed funding and reserve statement for every transaction.
Do reserves earn interest?
No. Reserves are non-interest-bearing but released quickly once funds clear.
What if my buyer pays short?
The reserve is adjusted based on the actual payment received after reconciliation.
