Chargeback

When a factor sends an unpaid invoice back to the business to be bought back or replaced.

Why it matters

A chargeback can reduce available reserve unexpectedly. Understanding every trigger, not just non-payment, is critical to avoiding surprise deductions.

Related terms

Related article: What is invoice factoring?

Related reading

Sources

  • International Factoring Association - International Factoring Association. Accessed 2026-05-19. Industry association source for factoring terminology and industry context.
  • Secured Finance Network - Secured Finance Network. Accessed 2026-05-19. Industry education source for secured finance and asset-based lending context.
Financial disclaimer. This page is educational only and is not financial, legal, tax, accounting, or credit advice. Factoring terms vary by provider and contract. Read the full disclaimer.