<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/tf/onlinemanual/000420" xml:lang="en">
   <Header>
      <Title>Factoring</Title>
      <Keyword type="header" order="d1e1949718">
         <Level1>Factoring</Level1>
         <Level2>overview</Level2>
      </Keyword>
   </Header>
   <AimSection>
      <Paragraph>ERP Enterprise supports <Link href="/baanerp/tf/glossary/glossary#000428" role="glossary">factoring</Link> of your
		outstanding receivables as well as payment of purchase invoices to <Link href="/baanerp/tf/glossary/glossary#000429" role="glossary">factors</Link> used by your
		suppliers.</Paragraph>
   </AimSection>
   <GeneralSection>
      <Paragraph>For <Emphasis>accounts receivable</Emphasis>, 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.</Paragraph>
      <Paragraph>For <Emphasis>accounts payable</Emphasis>, 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.</Paragraph>
      <Paragraph>You usually receive a <Link href="/baanerp/tf/glossary/glossary#000430" role="glossary">factor's advance</Link> from the
		factor against the receivables factored with it. Usually, the factor's advance
		is 70% to 80% of the factored amount.</Paragraph>
   </GeneralSection>
   <RelatedTopics>
      <SectionTitle>Related topics</SectionTitle>
      <RelTopic>
         <Link href="/baanerp/tf/onlinemanual/000423" role="manual">Factoring of accounts receivables</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/tf/onlinemanual/000424" role="manual">Factoring with recourse</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/tf/onlinemanual/000425" role="manual">Factoring without recourse</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/tf/onlinemanual/000426" role="manual">Factoring - receipts</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>