Common use of Account Advances Clause in Contracts

Account Advances. In Factor’s sole discretion, subject to the terms and conditions of this Agreement, Factor may from time to time advance to Client up to seventy-five percent (75.0%) of the aggregate Net Invoice Amount of Domestic Accounts outstanding at the time any such Account Advance is made, except Factor may, in Factor’s sole discretion, advance to Client up to fifty percent (50.0%) of the aggregate Net Invoice Amount of Costco Accounts outstanding at the time any such advance is made, in either case provided that dilution is ten percent (10%) or less on a trailing 12 month basis, less: (1) Any such Accounts that are in Dispute; (2) any such Accounts that are not acceptable to Factor in its sole discretion; (3) the amount of the Reserve; and (4) any interest, fees and other items, actual or estimated, that are chargeable to the Reserve. The Account Advances shall be reduced by a minimum of two percent (2.0%) for every one percent (1.0%) of dilution in excess of ten percent (10.0%). Factor shall not make account advances to Client for Foreign Accounts at any time.