Pay-when-paid

Contract language tying payment timing to receipt of funds from another party.

Why it matters

It can change invoice eligibility, reserve release, or the amount available for funding.

Related terms

Related article: How invoice factoring works

Related reading

Sources

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