An amount a funding source holds in its account to cover potential payment defaults. After a certain time period has passed, the funding source rebates the reserve to the client less any fees or charges for delinquency. Also called a bad debt reserve.
Other terms explained in the Business Loans Glossary
Business Loans Glossary: Reserve
Business Loans Glossary: Reserve
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Article Id: 130 - Version: 3 - Created: 26-02-2008 - Last Updated: 26-03-2008 - Hits: 391
Categories: Glossary
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