dilution risk means the risk that an amount receivable is reduced through cash or non-cash credits to the obligor;
More Definitions of dilution risk
dilution risk means the risk that the amount of purchased receivables is reduced due to the agreement between the seller of receivables and the receivables’ obligor. For example, the seller of receivables offers discount to the receivables’ obligor when the obligor makes payment within a specified period of time, or returns of goods sold within a specified period of time due to disputes regarding product quality, or any other obligations between the seller and the obligor.
dilution risk means the risk that the size of the receivable will decrease due to the provision of monetary or non-monetary payment to the obligor,