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BUSINESS FINANCING GLOSSARY

Reserve

In factoring, the portion of an invoice held back beyond the advance (e.g. the remaining 10–20%), released minus the fee once your customer pays.

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Related terms

Advance Rate→In factoring, the percentage of an invoice’s value paid to you upfront — typically 80–90%. The rest (minus the fee) is released when your customer pays.Burn Rate→How fast a business spends its cash reserves each month. Paired with cash on hand, it tells you your runway.

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