Factoring

FD4Cast allows the user to model a Factoring arrangement where amounts owed on sales invoices are passed to a factoring company in order to improve cash flow. The Factoring interface can be reached at the FD4Cast ribbon via Finance > Factoring:

In the FD4Cast model, Factoring can be managed in two different sections:

5.3.1 Invoice Discounting

The first section under Factoring interface is invoice discounting as shown below:

Discount Rate Selection: In top section (orange area) you enter the amount and choose the type of discount to be applied on invoiced sales. Single or Compound discount can be selected.

Income Category Discount Rates: The middle region (green area) is used to determine the ratio of invoices to be discounted. Sales items on the left belong to the Income Category which can be added as shown at 1.4.2 Add/Remove Category Rows and renamed as shown at 1.5 Admin Sheet.

On the right hand side of this section, the income amounts are shown. These values are input/edited in the Income section as explained at 3.1.1 Entering Standard Forecast Income.

Debtor Profiles: On the left side of this region (blue area) the debtor profiles are shown. Debtor profiles are input/edited via the Income sheet as explained in 3.1.2 Debtor Profiles. On the right side of this section we see the discounted invoice values.

After making the inputs, the monthly flow is reflected below:

Also note the Unwinding section on the bottom. The interest rate can be selected for changing monthly unwound amounts.

Presentation Options

There are 2 different presentation options to display the effects of factoring agreements. Using the same values from previous examples, the outputs for two different presentation options are as follows:

5.3.2 Working Capital Loan

This section is located down below the Invoice Discounting section and can be reached by clicking on its link at the top (or simply scrolling down):

In this section, we have income category items coming from the Income sheet. Simply enter ratio of invoices to be discounted and the figures will be generated:

You can also change the annual interest rate as shown above.