The factoring module essentially utilises the same functional modules as those defined in the Floor-planning module to manage short-term funding with interest and fees. The factoring contracts are based on specific financial scales that are applied to this activity.

The factoring module can be used to manage spare parts funding and other types of retail and wholesale invoice funding

New contracts

This module enables the input and validation, individually or by group, of new invoices:

• ProFinance supports the capability to record and validate the external references as well as the detailed description of each invoice
• ProFinance automatically carries out the control of the credit line, preventing the credit limit from being exceeded
• ProFinance offers two possible modes of financing: financing of individual invoice, or a group of financing of invoices consolidated on a single statement

On creating a new factoring contract, ProFinance handles the following:

• Automated financial calculations applied to each factoring contract (e.g. rate, spread, costs etc.), based on pre-defined rules within the financial product 
• Generates the refund projected plan of the invoice or the statement of the invoice, including capital, interest and other cash flows taking into account tax where appropriate

Contract management

This module includes the necessary functions to manage all the relevant after sales processes. The operator can access web pages dedicated to answering customer queries and can easily access customer service related information regarding customers and factoring contracts:

• Research and consultation of the financial and administrative characteristics of the contracts, and in particular the balances and repayment schedules
• Simulation and validation of a request for early settlement
• Simulation and validation of a partial refunding during the contract life
• Simulation and validation of a request for contract extension
• Validation of a contract conversion 

Standard common ProFinance back-office functions are available for managing factoring products as follows:

• Payment management
• Arrears and collections
• Accounting 
• Reporting
• Workflow and notes functionality