FactoringLN supports factoring of your outstanding receivables and payment of purchase invoices to factors used by your suppliers. For accounts receivable, you can set up the factoring of your sales invoices. The factor becomes the pay-by business partner and the pay-by business partner that is linked to the invoice-to business partner becomes the original pay-by business partner. For accounts payable, if your supplier factors the invoices, you can specify the pay-to business partner's factoring company and the factor's bank. Payments of purchase invoices are then made to the factor. You usually receive a factor's advance from the factor against the receivables factored with it. Usually, the factor's advance is 70% to 80% of the factored amount.
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