Security retention is a common procedure in factoring. If the security retention comes into effect for you, JITpay™ retains a sum of 5 % – 20 % of the purchased receivables amount.

This means that 80% to 95% of the gross receivables purchased are initially advanced. The retained amount is then used to cover any complaints or claims by the client as well as offsets, bonuses, discounts, rebates or other deductions.

As soon as your client settles his invoice, but at the latest when a bad debt loss occurs, the amount initially withheld will be paid out to you immediately. If customers make justified deductions, these are offset against the security retention.