Glossary · Factoring
Whole-ledger factoring
Also called: Full-ledger factoring, Contract factoring
Definition
Whole-ledger factoring is an arrangement in which a carrier sells all of its eligible invoices, or all invoices from approved debtors, to one factor under a continuing contract.
Whole-ledger deals usually pair a UCC-1 covering all of the carrier's accounts with an NOA to every debtor. The carrier gets lower rates and steady funding; the factor gets volume, filing priority and control of where debtors send payment.
The risk is leakage. A client can still route some loads around you: to broker quick pay, to a debtor that pays it directly, or to a second factor. Each typically breaches a whole-ledger contract, and the last one is double factoring.
Compare this with spot factoring, and see the double factoring guide for monitoring steps.