Event of default

A listed problem that lets the factor use default rights.

Why it matters

Default events can trigger funding suspension, default charges, reserve increases, repurchase obligations, collection action, or guarantee enforcement. The list may include more than non-payment.

Related terms

Related article: Default clauses in factoring agreements

Related reading

Sources

  • Uniform Commercial Code Article 9 - Uniform Law Commission. Accessed 2026-05-19. Reference for secured transactions concepts including receivables and filings.
  • 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.