Training Course: Advanced Factoring, Receivables Finance & Supply Chain Finance Training Course

Introduction:

Advanced factoring, receivables finance and supply chain finance are the techniques by which a business turns unpaid invoices or approved supplier payables into early cash, by selling them to a funder or borrowing against them. This 5-day course serves credit, trade finance, treasury and working-capital managers and professionals and ends with a facility structuring and risk assessment pack. It is taught at expert level through case studies on invoice ledgers, debtor data and contract terms, referenced to the Standard Definitions for Techniques of Supply Chain Finance, an industry-agreed glossary of these products.

Course Objectives:

• Distinguish recourse from non-recourse factoring, and disclosed factoring from confidential invoice discounting, when matching a structure to a client's risk appetite
• Compare payables finance with dynamic discounting and select the technique that fits a buyer's liquidity, supplier base and accounting position
• Apply debtor-limit, concentration and dilution analysis to a receivables ledger to set advance rates and eligibility criteria
• Interpret assignment, notification and true-sale clauses in receivables purchase agreements to judge enforceability and ownership risk
• Define the two-factor model and the roles of export and import factors when financing cross-border receivables
• Justify a facility structure, pricing logic and control set for a receivables or supply chain finance proposal before a credit committee

Target Audience:

• Factoring and invoice finance credit managers and analysts who set debtor limits and advance rates and decide whether a client portfolio is fundable
• Trade finance and transaction banking managers, relationship officers and product specialists who choose which receivables or payables technique to offer a corporate client
• Treasury and working-capital managers and treasury analysts who weigh early-payment options against supplier relationships and balance-sheet treatment
• Credit control and accounts receivable professionals who judge which customer invoices to sell, pledge or keep on the books
• Risk, audit, compliance and operations professionals in finance providers who assess fraud, dilution and documentation controls before funding
• Procurement and supplier-relationship managers and specialists who decide which suppliers to onboard to a buyer-led payables finance arrangement

Course Outline:

Day 1: Foundations of Trade Receivables, Working Capital and Financing Choices

• Cash Conversion Cycle: Measuring Days Sales Outstanding And Days Payable Outstanding Gaps
• Receivables Purchase vs Loan Against Receivables: Ownership Transfer And Balance-Sheet Effect
• Recourse vs Non-Recourse Factoring: Who Bears Debtor Insolvency And Payment Default
• Disclosed Factoring vs Confidential Invoice Discounting: Debtor Notification And Collection Control
• Working-Capital Diagnostic: Mapping A Client's Receivables, Payables And Funding Gaps

Day 2: Standard Definitions, International Factoring Rules and Technique Families

• GSCFF Standard Definitions: Receivables Purchase, Loan-Based And Payables-Led Technique Groups
• Two-Factor International Factoring: Export Factor And Import Factor Roles In Cross-Border Trade
• General Rules For International Factoring: Assignment, Credit Cover And Dispute Handling Between Factors
• Forfaiting vs Receivables Discounting: Instrument-Based And Invoice-Based Purchase Of Trade Debt
• Corporate Payment Undertaking: Buyer Payment Commitment Used To Support Payables Finance

Day 3: Structuring Factoring, Payables Finance and Dynamic Discounting Facilities

• Payables Finance vs Dynamic Discounting: Third-Party Funded And Buyer-Funded Early Payment
• Advance Rate And Eligibility Criteria: Setting Prepayment Levels From Ledger Ageing Data
• Debtor Limits And Concentration Caps: Credit Approval Method For Individual Buyers
• Discount Charge And Service Fee: Pricing Factoring Facilities Against Cost Of Funds
• Distributor Finance And Pre-Shipment Finance: Extending Funding Up And Down The Supply Chain

Day 4: Risk, Fraud, Legal Enforceability and Accounting Treatment

• Dilution Risk vs Credit Risk: Credit Notes, Disputes And Debtor Default Compared
• Invoice Fraud Red Flags: Fictitious, Duplicate And Pre-Invoicing Detection Tests
• Assignment And Notification Clauses: True-Sale Analysis And Anti-Assignment Clause Exposure
• Supplier Finance Disclosure: Accounting Classification Of Payables Finance As Trade Payables Or Debt
• Credit Insurance And Platform Registries: Mitigating Non-Payment And Double-Financing Exposure

Day 5: Case Study Practice: Structuring and Defending a Receivables Finance Facility

• Portfolio Due Diligence Case: Applying Ageing, Dilution And Concentration Tests To A Ledger
• Factoring vs Payables Finance Case: Selecting A Technique For A Mixed Supplier Base
• Cross-Border Receivables Case: Structuring A Two-Factor Arrangement With Export And Import Factors
• Credit Committee Defence: Presenting Pricing, Controls And Residual Risk For Approval
• Facility Structuring And Risk Assessment Pack: Completing The Term Sheet And Control Matrix

Skills You Will Gain:

• Debtor Limit Setting
• Dilution Risk Analysis
• Advance Rate Calibration
• True-Sale Assessment
• Supply Chain Finance Technique Selection
• Invoice Fraud Detection
• Factoring Facility Pricing
• Two-Factor Cross-Border Structuring

Why Attend This Course:

• From reading factoring offers as interchangeable to telling recourse, non-recourse, disclosed and confidential structures apart by who carries each risk
• From setting advance rates by habit to deriving them from ledger ageing, dilution history and debtor concentration
• From treating payables finance as a procurement tool only to weighing its funding cost, supplier uptake and accounting classification together
• From an informal funding request to a facility structuring and risk assessment pack with a term sheet and control matrix ready for committee review

Conclusion:

Receivables-based funding converts trade credit already granted or received into liquidity, and its value depends on who owns the invoice, who carries the loss and how the arrangement is reported. The course makes three distinctions clear: sale of receivables against borrowing on them, credit risk against dilution risk, and funder-financed payables finance against buyer-financed dynamic discounting. It suits managers and professionals who already handle trade credit, factoring or treasury work and now need to structure, price and defend facilities rather than simply operate them.

Frequently Asked Questions (FAQ):

What should delegates know before joining an advanced factoring, receivables finance and supply chain finance course?

Delegates should already work with trade credit, invoice finance, treasury or credit analysis and be comfortable reading financial statements and aged debtor reports. The course assumes basic knowledge of how factoring works and builds on it with structuring, risk and legal analysis rather than introductory definitions.

How does this factoring, receivables finance and supply chain finance course differ from a general trade finance course?

It concentrates on open-account receivables and payables techniques rather than documentary instruments such as letters of credit and guarantees. Delegates work at structuring depth, setting advance rates, debtor limits and controls, instead of surveying the full range of trade finance products at an introductory level.

Is reverse factoring the same thing as supply chain finance, or a form of receivables finance?

Reverse factoring is one supply chain finance technique, usually called payables finance in industry definitions. It is initiated by the buyer, which approves invoices so that its suppliers can sell them early to a funder, whereas ordinary factoring is arranged by the seller over its own receivables.

What do delegates take back to work from the factoring, receivables finance and supply chain finance course?

Delegates take back a facility structuring and risk assessment pack built on a case portfolio, containing a term sheet, eligibility and advance-rate logic, debtor limits and a control matrix. It can be adapted as a template for reviewing real client portfolios or internal working-capital proposals.