A perfect fit for small and medium business to centralize all the factoring data, mitigate risks and accelerate business growth.
Microsoft Dynamics 365 Business Central solution to improve efficiency of your factoring business.
Why not start working more easily? Explore the value SOFT4Factoring is ready to create for your business.
Streamline the invoicing process and ensure that all your invoices are generated accurately—no more delays in payments and costly errors.
Manage everything from application to funding. Automate daily tasks to save time and personnel resources when handling even the most significant volume of data.
Trust Microsoft to prevent possible data breaches and comply with data pricacy regulations.
Tailored for these types of debtor finance
Explore the functionalities of SOFT4Factoring
Automated processes for invoice verification, data entry, and payment processing. SOFT4Factoring software saves time, reduces manual errors, and accelerates the entire factoring workflow, enhancing operational efficiency.
SOFT4Factoring invoice finance software enables real-time monitoring of the portfolio. It provides instant updates on payment statuses, enabling quick actions on late payments or potential defaults. This timely response helps in minimizing losses and optimizing the portfolio's performance.
Comprehensive reporting tools providing insights into cash flow, client performance, and portfolio analysis. Our factor software enables informed decision-making, identifies trends, and helps factors assess portfolio health for risk management.
Winning customers choose SOFT4Factoring
Have questions? We have you covered!
Explore Frequently Asked Questions.
How does invoice factoring work?
Invoice factoring involves a business selling its unpaid invoices to a third-party company (the factor) at a discounted rate. This enables the business to receive immediate cash instead of waiting for customers to pay. After approval, the factor advances a portion of the invoice amount to the business (usually around 70-90%), collects payments from customers, deducts its fees, and releases the remaining balance to the business. Factoring helps improve cash flow by providing quick access to funds, although it comes with fees and a discount on the invoice amount.
How does invoice factoring software work?
Invoice factoring software simplifies and automates managing accounts receivable and invoice financing. It typically functions in the following way:
- Invoice Submission and Processing: Businesses upload or input their unpaid invoices into the software. The software verifies and organizes these invoices for further processing.
- Evaluation and Approval: The software might assess the invoices and associated customer creditworthiness. It could conduct credit checks or use predefined criteria to determine eligibility for financing against these invoices.
- Factor Interaction: The software facilitates communication between the business and the factoring company. It allows for the seamless transfer of invoice details, customer information, and transaction records between parties.
- Funding and Cash Advances: The software initiates the funding process upon approval. It may trigger the transfer of a percentage of the invoice value (as agreed upon) to the business, providing immediate working capital.
- Monitoring and Reporting: The software tracks payments, outstanding invoices, and other relevant financial data. It generates reports, offering insights into cash flow, outstanding receivables, and the status of financed invoices.
- Integration and Compatibility: Many invoice factoring software solutions integrate with accounting systems, ERPs, or CRM platforms. This integration streamlines the invoicing and financing process, reducing manual data entry and improving accuracy.
- Security and Compliance: Good factoring software ensures data security, encrypts sensitive information and adheres to industry regulations regarding financial transactions and customer data protection.
- User Interface and Support: It provides a user-friendly interface for easy navigation and operation. Additionally, it might offer customer support, training, and resources to assist users with any issues or inquiries.
- Automation of Repayment: Once customers pay the invoices, the software updates records and may allocate the received payments to the financed invoices, helping close the funding cycle.
Overall, invoice factoring software streamlines and expedites invoice financing, enhancing efficiency, transparency, and control for businesses seeking to manage their accounts receivable and access immediate working capital.
Can SOFT4Factoring handle multiple types of invoices?
Yes, SOFT4Factorong can handle:
- Standard Factored Invoices:
- These are regular invoices issued by a business for goods sold or services rendered. In standard factoring, these invoices are sold to a factor at a discount to access immediate cash flow.
- Spot Factoring Invoices:
- Spot factoring allows businesses to select specific individual invoices or a small batch of invoices to be financed. This flexibility enables businesses to choose which invoices to factor based on their immediate cash flow needs.
- Selective Factoring Invoices:
- Similar to spot factoring, selective factoring allows businesses to choose specific invoices for financing while retaining control over the rest of their accounts receivable. This approach provides flexibility in managing cash flow.
- Recourse Invoices:
- Recourse invoices are part of factoring agreements where the business retains the responsibility for unpaid invoices if the customer fails to pay within the specified time frame. In recourse factoring, the business may need to buy back or replace the unpaid invoices.
- Non-Recourse Invoices:
- Non-recourse invoices are part of factoring arrangements where the factor assumes the risk for unpaid invoices due to specific reasons outlined in the agreement, such as customer insolvency or bankruptcy. The business is not liable for these unpaid invoices under certain conditions.
- Bulk or Whole Turnover Invoices:
- Whole turnover factoring involves financing all or the majority of a business’s invoices, providing ongoing working capital against the entire accounts receivable ledger.
- Maturity Invoices:
- Maturity factoring involves financing against invoices due at a future date. It allows businesses to access funds before the payment due date, improving cash flow.
Can SOFT4Factoring handle different currencies?
Yes. SOFT4Factoring is built on the Microsoft Dynamics 365 Business Central platform, which allows handling multiple currencies out of the box. With this functionality, you can quickly process transactions for customers, vendors, and bank accounts using currencies other than your local currency. Multi-currency processing includes adding additional currencies, managing exchange rates, assigning currencies to customers and vendors, and tracking foreign and regional amounts. SOFT4 adjusted this functionality to meet debtor finance business-specific requirements.
Does the SOFT4Factoring software integrate with other accounting or business management systems?
Yes, through open APIs we can integrate SOFT4Factoring to any external software systems, such as accounting (QuickBooks, Xero, 1Tech, SAP, Oracle, NetSuite and others), CRM (Hubsport, Microsoft Dynamics, Salesforce and others), banking, e-signature, document management platforms etc. You can download the information needed in .xls or .csv files and import those into your systems, too.
How many users can use the software within a company?
You can have as many users as you want, as well as an unlimited number of companies, clients, suppliers, contracts, and invoices.
Is the software customizable to fit the unique needs of my business?
Yes. Even if we encourage our customers to start using the standard SOFT4Factoring functionality to receive the benefits of new software faster, we understand that each business is unique. To satisfy those particular needs or build a competitive advantage, SOFT4 developers can develop custom-specific extensions to the standard SOFT4Factoring software. It costs a bit more to support and upgrade those custom extensions to the new versions, but customers find it beneficial and valuable.
Can SOFT4Factoring scale as my business grows or my invoice volume increases?
Yes. SOFT4Factoring is built on a robust Microsoft Dynamics 365 Business Central platform, supporting hundreds of thousands of daily operations. We target small and medium-sized businesses and look forward to launching the system as quickly as within two weeks for you. However, we’ve also had large projects that can take a few months to complete, with hundreds of clients, contracts, and thousands of invoices – SOFT4Factoring works just fine. So, once you start using SOFT4Factoring, you can relax – your business is in good hands regarding software for the years to come.