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Statement of account
Also called account statement, ledger, transaction history.
The funder's or servicer's running record of a deal: amounts debited, payments applied, fees charged, and the balance remaining as the creditor computes it.
Drafted with AI assistance. Not yet independently checked. Nobody has verified the claims on this page against a source, so treat the figures and legal points as a starting point rather than as settled, and confirm anything you are about to act on. How we check things.
What it means
It is the document to request when the numbers stop agreeing with your own records, which happens more than it should. Things to look for line by line: whether every debit posted was applied to the balance, whether re-presented debits were double-counted, what NSF or default fees were added and on what date, whether any refunds from reconciliation appear, and whether the balance is being reported as remaining purchased amount, remaining principal, or an accelerated figure.
On a loan the statement shows a principal balance that declines as payments are applied. On an advance there is no principal in that sense — the figure is the unpaid portion of the purchased amount, which does not amortise the way a loan does and does not fall by an interest calculation.
Many contracts contain an account-stated clause: if the merchant does not object to a statement within a stated number of days, the balance is deemed correct and disputes about earlier entries are waived. That clause is why the statement matters at the time it arrives rather than a year later.
Where this one catches people
A statement balance and a payoff quote are different numbers and are meant to be. On an advance the statement shows the unpaid purchased amount; a payoff may quote that same figure with no discount at all, because the cost was fixed at origination rather than accrued over time. Merchants read the statement, assume paying early saves the difference between it and the original payback, and are corrected only when they ask for the payoff letter.
Where you will meet this term
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Statement of account — common questions
What does statement of account mean?
The funder's or servicer's running record of a deal: amounts debited, payments applied, fees charged, and the balance remaining as the creditor computes it.
Where does statement of account catch people out?
A statement balance and a payoff quote are different numbers and are meant to be. On an advance the statement shows the unpaid purchased amount; a payoff may quote that same figure with no discount at all, because the cost was fixed at origination rather than accrued over time. Merchants read the statement, assume paying early saves the difference between it and the original payback, and are corrected only when they ask for the payoff letter.
Is statement of account the same as an interest rate?
Statement of account is defined above; if you are comparing it against a rate, check whether the two measures share a time dimension before you put them side by side.
Which products does statement of account apply to?
Merchant Cash Advance, Working Capital, Term Loan, Invoice Financing.
Is there a worked example of statement of account?
Not on this entry. Where a term is arithmetic, the arithmetic is shown; this one is not primarily a calculation.
What else should I read alongside statement of account?
NSF fee, Payoff letter, Reconciliation, Servicing, Total repayment amount.
Has this definition been checked?
Not yet. This entry is drafted and live, and the notice at the top says so. Confirm anything you are about to act on.
Is this legal advice?
No. It is a definition. What a clause does in your contract, in your state, is a question for a lawyer licensed where you are.
Can I suggest a term?
Yes — [email protected]. The glossary grows from what people are actually shown in contracts.