Service credit

A customer credit that reduces what the customer owes for the invoice.

Why it matters

Service credits create dilution and can trigger reserve deductions or chargebacks. They matter in cleaning, security, IT services, and other service businesses.

Related terms

Related article: Understanding dilution in invoice factoring

Related reading

Sources

  • 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.