Custom factoring administration software for debtors
Appfront builds software for businesses that finance their invoices through factoring: per invoice whether it has been offered to the factor, accepted and advanced, the advance and the reserve, customer payments that go to the factor, costs and interest per period, and a reconciliation between your own debtor ledger and the factor's statement. So you know at any time where the money sits, and month-end close doesn't start with hunting for differences.
What is debtor factoring administration software?
In factoring, a business sells or assigns its invoices to a factor and immediately receives an advance on a portion of the amount. When the customer pays, the money goes to the factor, who pays out the remainder minus fees. This means each invoice has two lives: in your own ledger and in the factor's. Factoring administration software keeps those two in step.
Without such software, the administration sends an export of invoices to the factor and receives a statement back in the factor's own format. Which invoices were accepted, which fell outside the limit, which payment reached the factor and which mistakenly landed in your own account: all of this gets sorted out by hand every month. Fees and interest are booked as a single amount. And how much room remains within the facility is only known when the director asks.
We build custom software because the administration needs to fit your factoring agreement and systems: which type of factoring you have, how invoices are submitted, how advances, reserves and fees are calculated, which limits apply per debtor, in what form the factor reports, and which accounting software you use. An accounting package knows debtors; it does not know the position of each invoice with the factor.
Every invoice, two sides
Per invoice whether it has been offered, accepted and advanced, and which part sits with the factor and which part with you.
Money that adds up
Advance, reserve, payments, fees and interest per invoice and period, calculated according to your agreement with the factor.
Reconciled
Your debtor ledger alongside the factor's statement, with differences presented as a list rather than a search.
How we build your debtor factoring administration software
We start with your latest month-end close: how many invoices, how many differences with the factor, and how long it took before everything reconciled.
Your factoring agreement, the method of offering, advance, reserve and fees, the factor's reporting, and your accounting package.
Invoices from your system, the offering to the factor, acceptance and limits per debtor.
Advance and reserve per invoice, customer payments, fees and interest, and the onward payment.
Reconciliation with the factor's statement, postings in the accounting package, the liquidity overview, and ongoing management.
What debtor factoring administration software actually does
The components below feature in almost every business with factoring. Which ones you need depends on your agreement and your volume.
Offering
Invoices offered to the factor per batch or per invoice, in the format the factor requires.
Acceptance and limits
Whether each invoice is accepted or not, and per debtor the limit and the headroom still available.
Advance and reserve
The advance and reserve per invoice, and when the reserve is released.
Payments
Customer payments received by the factor or accidentally into your account, linked to the invoice.
Costs and interest
Factoring fees, interest and other costs per period, itemised and booked.
Reconciliation
Your own ledger alongside the factor's statement, with a list of differences.
Who we build factoring debtor administration software for
The software is intended for businesses where reconciling with the factor is currently a manual task.
Wholesalers
Many invoices to many customers. Limits per debtor and reconciliation are the core.
Transport companies
Long payment terms from shippers. The advance and liquidity matter most.
Temporary staffing and recruitment agencies
Weekly invoices and payroll payments. Speed of offering is what counts.
Manufacturing companies
Large invoices to few customers. The reserve and costs are the core.
Test your idea first: a working prototype in 1 day
With OneDayBuild, we turn your idea into something tangible in one day for €1,150, so you can see whether further development is worth the investment. Decide to go ahead with the full build? Then we credit the full cost.
Explore OneDayBuild →Technology and integrations
This page is about the administration surrounding factoring. For collecting your own invoices, see our page on accounts receivable management software; for business finance, see our page on business lending; and for ongoing loans, see our page on repayment schedules and loan administration. You can read about how we work at custom software development.
For businesses that supply on account and want to monitor the full position per customer, there is our credit limit monitoring software.
Why choose Appfront for your factoring debtor administration software?
Factoring provides breathing room, but also a second set of records. We build on that: knowing per invoice where the money is, costs you can explain, and a month-end close without the hunt.
No hunting
Differences with the factor are listed. Month-end close is about resolving, not searching.
Headroom you can see
Per debtor and in total, you can see how much room remains within the facility.
Itemised costs
Fees and interest per period, shown separately. You see what factoring truly costs you.
Security and privacy in factoring debtor administration software
The software holds invoices, debtors, payments and financing agreements: confidential financial data. Access is set by role: administration processes, the controller reconciles, the management team sees liquidity. Every booking and correction is logged with name and time.
The software runs in a European data centre, with encrypted storage, daily back-ups and sign-in with a second factor. Integrations with your bank and factor use your own keys, which can be revoked.
Frequently asked questions about factoring debtor administration software
Questions businesses with factoring ask before getting started.
It tracks per invoice whether it has been offered, accepted and advanced, calculates advances and reserves, matches customer payments, separates out costs and interest, reconciles your books with the factor's statement, and produces the journal entries and a cash flow overview.
The software reads the factor's statement in the format the factor reports in, either as a file or via an integration. Which factor you use and what they deliver is something we look at in the first step.
Forms in which invoices are sold or pledged, with or without taking over the credit risk, and offered per invoice or per batch. The calculation follows your agreement; what that means legally and for tax is a matter for your adviser.
The software recognises the payment on an invoice that sits with the factor, and prepares the amount to be passed on or set off.
Yes. Advances, reserves, fees and interest are prepared as journal entries for your accounts, following the chart of accounts you use.
Yes. The limit, usage and remaining headroom per debtor and in total, plus the expected advance on new invoices.
Check that first. Many factors have a portal with their own overview, and that is enough if you have few invoices. Custom development makes sense if you have a high volume of invoices, if reconciling with your own administration takes time each month, or if you want to see costs and liquidity for yourself.
Know at invoice level where the money is?
Tell us which factoring agreement you have, how many invoices you submit and how you reconcile today. We will show you what the submission, reconciliation and overview could look like.