# Contract holdback

- Canonical URL: https://www.gerhardmerk.de/contract-holdback-2
- Post ID: 589114
- Modified: 2023-07-25T20:59:48+00:00
- Language: en

## Definition

In factoring, the usual deduction - usually one fifth - when paying out the purchased receivables. The amount serves to compensate for any difficulties of any kind in connection with the receivable. If the receivable is paid in full - i.e. if the debtor has paid without further ado - then the security retention amount is transferred by the factoring company to the factoring client. - Under a credit insurance policy, a justifiably made security retention and, as a rule, the full reduction amount can be insured. - See SelfFactoring, security, security money. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

## Machine-readable

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