Debtor ledger
A customer-by-customer payment record showing what is billed, paid, credited, or still open.
Why it matters
A factor may use debtor ledgers to review payment patterns, aging trends, and credit exposure across the seller customer base. The debtor ledger tracks all funded invoices by customer, showing amounts advanced, payments received, fees applied, and reserve status. Discrepancies between the seller accounts receivable ledger and the factor debtor ledger are a common source of disputes and may trigger audit requests. Sellers who maintain their own debtor records in sync with the factor ledger can identify issues before they escalate.
How it appears in contracts
Debtor ledger access and reporting obligations appear in the Reporting or Administrative sections of the factoring agreement. Sellers typically agree to provide updated accounts receivable reports at defined intervals. The factor debtor ledger is the definitive record for settlement purposes, not the seller internal accounting system. Disputes about ledger balances must be raised within a specified time period; late objections may be foreclosed by express agreement. Sellers who have independent accounting software should reconcile it against factor-reported balances at least monthly to catch discrepancies early.
Related terms
Related reading
Sources
- International Factoring Association - International Factoring Association. Accessed 2026-05-19.
- Secured Finance Network - Secured Finance Network. Accessed 2026-05-19.