Factoring

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.