Factoring companies typically advance most of an invoice right away and hold the rest as a reserve. When the broker pays, the reserve is released, less the factoring fee.
For each invoice, record
- Load, broker and invoice amount.
- The date factored and the advance received.
- The fee.
- The date the broker paid and the reserve released.
Reconcile weekly
Compare your list with the factoring company's reports. Ask about any reserve held longer than expected.
Our factoring log shows reserves still owed.
General information, not legal, tax or financial advice.
This article is general information, not legal, tax or regulatory advice. Rules change; confirm current requirements with the responsible agency or a licensed professional.
