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Definition
A disapproved invoice is one an invoice financier declines to advance against — perhaps because it is too old, disputed, to a customer over their concentration limit, or otherwise ineligible. It stays on your ledger but generates no advance.
In plain terms
Financiers fund only invoices that meet their criteria, so a portion of your ledger may be disapproved at any time. Knowing what gets disapproved — and why — helps you predict how much cash a facility will actually release.
Why it matters
Managing disapprovals means keeping invoices clean, current and undisputed. See concentration limit and advance rate.
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