Factoring and insurance

With factoring, a factor buys your invoices: it pays you an advance (for example 80% of the gross) when you hand the invoice over, and the rest once your client has paid. Quanty marks which invoices are factored, makes the list for the factor's panel, records the advances, rests and recourses (from a payment, a bank statement or the factor's own statement) and keeps reminders away from invoices the factor chases. It also marks invoices covered by credit insurance.

Before you start

The factor is a contractor in your register. On the client's card, Factoring company and Advance say who buys this client's invoices (see The contractor card). Changing them needs the Finance module.
The factor collects from the clients on the factor's own card is an admin's switch (see Invoicing terms).
Handing over and loading statements need a role that may change TMS data; a member limited to some TMS modules needs Finance.
Reading a PDF statement with AI needs the TMS AI switched on and uses AI credits.

Factored invoices

A new draft for a client that is factored on its card is factored from the start and says so, with the factor and the advance percentage: "Factoring: Faktor S.A., advance 80 %". Its printout carries the factor's account ("Factor's account (Faktor S.A.): …") and the assignment clause.

No factoring on this invoice (on a draft): "The draft took the factor from the client card. Switch it off when this invoice is not for the factor." An issued invoice is changed with a correction.
Factoring in an invoice's ⋯ opens Hand over to factoring: "Pick the factoring company and the advance it pays. Payments from the factor are then recorded as advance, balance or recourse." Pick the Factoring company and the Advance (0 to 100%, "Expected advance …"), then Save factoring.

The invoices list has a Factoring column ("Factored by …") and Receivables shows the advance received.

The Insurance and factoring section

Line	What it means
Insured	"The invoice is covered by credit insurance." A switch.
Factoring: …, advance … %	The factor and its advance.
Advance expected	The advance the factor should pay.
Advance received	What the factor paid as the advance.
Rest received	What the factor paid after your client paid it.
Taken back by the factor	A recourse: the factor took the advance back.
Paid to our account	What the client paid to you directly anyway.
Handed to the factor on …	When it was handed over, or "Not handed to the factor yet".

"The client pays the factor." is shown when the factor collects from your clients.

Hand invoices to the factor

On the invoices list, tick the factored invoices of one factor (or open one invoice).
Click Hand to the factor (5) in the bar (on an invoice: Hand to the factor in its section or ⋯).
Quanty marks the invoices as handed over ("Invoices handed to Faktor S.A.: 5. The list for the factor's panel is downloaded.") and downloads the list to load in the factor's panel.

At most 200 invoices at once, all of one factor and all issued: "One list goes to one factor: pick the invoices of one factor." Download the factor list again gives you the same list once more. The hand-over is listed on the client's Documents tab under Correspondence ("Handed over to the factor").

Money from the factor

The factor's money lands on the invoice as payments of three kinds:

Kind	When	Effect on the invoice
Factoring advance	"The factor pays the advance (for example 70% of the gross) right after you hand over the invoice."	Paid in part.
Factoring balance	"The factor pays the rest once your client has paid the factor."	Paid.
Factoring recourse	"The factor takes the advance back because the client did not pay. The invoice is open again."	Open again, by the amount taken back.

You record them in three ways:

By hand: Record payment on Receivables, with the method Factoring advance, Factoring balance or Factoring recourse (see Record a payment).
From the bank statement: Quanty recognises the factor's transfers ("Transfer from the factor's account", "The amount is the factor's advance for this invoice", "The factor's advances or rests for these invoices add up to the transfer"). An advance and a rest are two payments: book one of them, or split the transfer by hand. See Bank statements.
From the factor's statement (below).

Load the factor's statement

Bank and payments, tab Factoring: "The factor's statements (CSV, XLSX or PDF): advances, rests and recourses go to the invoices after you check them; fees are kept as a note."

Click Load statement. Load the factor's statement: "Pick the factor and the file from its panel. You see every row before anything is saved."
Pick the Factor and the File: "CSV, XLSX or PDF (a PDF is read by AI when it is on)." Up to 10 MB and 2 000 rows. When the file has no currency column, set the Currency of the statement ("Only when the file has no currency column.").
Click Read. When Quanty cannot tell the columns from the header, point them out: Invoice number, Kind of row, Amount (or the Advance, Rest, Recourse and Fee columns), Currency, Date and Note. The layout is remembered for that factor. Read with AI reads the file with AI instead ("Read by AI: check the rows before saving.").
Check every row: Invoice, Kind (Advance, Rest, Recourse, Fee), Amount, Date and Match. The summary says "12 rows will be saved, 1 to check, 2 fees as a note."
Click Save 12 rows: "Saved: 12 payments, 12 rows on their invoices."

What a row's Match can say:

Match	What it means
Will be saved	Ready.
Already saved	Saved from an earlier statement.
Fee, kept as a note	A fee: it goes into the payment's note, never into costs.
No such invoice / More than one invoice fits	Find the invoice and fix the number in the file.
The invoice is with another factor	The invoice belongs to another factor.
More than is still open / More than the factor paid	The amount does not fit the invoice.
Another currency than the invoice	The currency does not fit.
The invoice is not issued	A draft cannot take a payment.
A minus amount: book it by hand if it is a reversal	Record it yourself.
Settled in the connected system	An invoice of the system running next to Quanty.

The same file loaded twice adds nothing: "This file was already saved on …. Nothing new was added." A saved statement whose rows became bookable since (an invoice was issued later) opens again with only those rows ready. The Factoring tab lists every statement with its File, Factor, Loaded date and State: "Saved, payments: 12", Columns to point out, or "To check, 12 rows ready".

The factor collects from your clients

With The factor collects from the clients on the factor's card, your clients pay the factor directly. Then:

a factored invoice of such a client says "The client pays the factor.";
the bank import does not offer the client's transfers for those invoices, unless the title names the exact invoice number, and then only with a warning, never booked automatically;
Quanty prepares no automatic payment reminder for a factored invoice, whether or not its factor collects, unless Also remind factored invoices is ticked in the client's reminders or the client's reminders are gentle; a person can still write one from the invoice. A client's reminders can also be set to handled by the factor (see Dunning).

A factored invoice is never set off against what you owe the client: "the factor collects it".

Good to know

A factored invoice counts in receivables like any other invoice, until the factor's rest (or your client's payment) settles it.
A recourse opens the invoice again by the amount taken back, so it shows in Receivables as open.
Invoices copied from another system running next to Quanty deal with the factor there.

Your factoring contract decides

Quanty records what the factor pays and takes back, and keeps reminders away from invoices the factor chases. What the factor buys, its fees and its recourse rules come from your contract with it.

Receivables: recording factoring payments by hand.
Bank statements: the factor's transfers.
Dunning: reminders and factored invoices.
Invoicing terms: the client's factor and the factor's switch.