Factoring Settlement Account definition
Factoring Settlement Account the Factor's internal bookkeeping account in which payment claims of the Client against the Factor and payment claims of the Factor against the Client are set-off against each other. A positive balance of the account is paid out to the Client, whereas the Client must settle a negative balance by payment. In Balance Reconciliation System, special rules apply.
Factoring Settlement Account means the technical settlement account that was opened at the Bank for the Client, as defined in the Factoring Agreement, which serves as a place of settlement for the Clients/Obligors, or where the payment obligations from the factoring relationship are accounted for (deducted, offset or paid) according to this GTC. The prevailing balance of the Factoring Settlement Account serves as security deposit for the existing and future claims of the Bank against the Client under any Factoring Agreement made between them. The Client has no right of disposal over the Factoring Settlement Account.
Examples of Factoring Settlement Account in a sentence
The renumeration shall be debited from the Factoring Settlement Account.