Factoring Sales Invoices

Hi Paul - It's usual to set up a new bank account representing the factoring company.

So as the invoice is paid by the customer you pay it off to this account, then when they pay you money, you treat it as a transfer between the new account to your normal bank account. For any that are deducted before the money comes to you, you also treat the factoring fees and charges as payments out of the new account.