Creating a new factoring agreement in SOFT4Factoring is a streamlined process designed to help you launch client relationships quickly while minimizing manual work. Follow the steps below to set up and activate your agreement.

1. Start a New Agreement

• From the Home page, click the Agreements icon.

• You’ll see a list of all existing agreements.

• Click “New” to create a new agreement.

Note: The system automatically generates the agreement number, status, and date fields—but you can adjust them later if needed.

2. Select Factoring Type and Currency

• Choose the factoring product from the list, depending on the type of service you offer.

• If you work with multiple currencies, specify them here. Otherwise, your system defaults to the local currency.

  
  

3. Set Interest and Commission Terms

• Interest and commission fields auto-fill based on your factoring product configuration.

• You can manually override values if needed.

  
  

4. Add or Select a Client

• In the Client No. field, select an existing client from the list.

• Client details will populate automatically.

• To create a new client, fill in the required fields and click Assisted Setup—a vendor record will be generated automatically.

  
  

5. Define Credit Limits (Optional but Recommended)

• Go to the Agreement Credit Limits section.

• Click New and enter:

  • Validity period

  • Credit limit amount

  • Next review date

• Click Approve to save the credit limit.

  
  

6. Add Debtors to the Agreement

• Under the Debtor section, click New.

• In the No. field, select an existing debtor or create a new one.

• For a new debtor, complete the fields and press Assisted Setup to auto-generate the debtor record.

You can also set a credit limit for each debtor:

• Click Agreement Debtor Credit Limits → New

• Enter credit terms just like for the agreement credit limit.

  
  

7. Review Totals and Agreement Details

• Navigate to the Totals tab to see real-time data for the agreement:

  • Invoices and disbursements

  • Commissions and reserves

  • Collections and balances

    
    

8. Manage Agreement Documents

• Use the Documents section to manage all related files.

• Upload documents using the File Drop Area into the Documents Bin.

• You can also:

  • Use document templates for faster generation.

  • Integrate with e-signature providers for a fully digital signing process.

    
    

9. Validate and Activate the Agreement

• On the Agreement Card, locate the Status field.

• Change the status to “Valid” (or another status according to your business process).

• Once validated, most system fields become non-editable to prevent human error.

  
  

That’s it—your new factoring agreement is live in SOFT4Factoring!
From here, you can begin managing invoices, tracking payments, and monitoring performance—all from one centralized platform.