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BUSINESS FINANCING GLOSSARY

Concentration

In factoring, heavy reliance on one customer for most of your invoices. Factors watch it as a risk, though a strong debtor offsets it.

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Related terms

Aging Report→A breakdown of your unpaid invoices by how long they’ve been outstanding (e.g. 0–30, 31–60, 61–90 days). Factors use it to gauge collection risk.Lockbox→A bank-controlled account where customer payments are sent directly — common in factoring so the factor collects remittances cleanly.Notification Factoring→Factoring where your customers are told to pay the factor directly. Non-notification keeps the arrangement private and you collect as usual.

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