Factoring Fundamentals


Factoring Fundamentals is a distance learning program that combines six virtual workshops. We call each module an "essential" because it provides such a solid grounding of essential knowledge on a specific aspect of factoring.

The six essentials of factoring are:

  • The Essential Factoring Overview
  • Operations Essentials for Factors
  • Underwriting Essentials for Factors
  • Debtor Risk Management Essentials
  • Relationship Essentials
  • Collecting Out Essentials

Although Factoring Fundamentals is designed for those who are in the first few years of work within the factoring industry, the program is structured in such a way that we are able to delve into each issue in great depth. That is because the program is divided into two elements:

  • E-learning module: The core information, presented in a concise and clear form as pre-work
  • Virtual Workshop: Led by experts who illustrate the basic concepts by applying them to case-studies

For upcoming workshop dates, click here.


$895.00 Members
$1295.00 Non Members

What you will learn

  • A thorough and systematic overview of the key aspects of Factoring
  • Awareness and understanding of assessing risks for both debtors and clients
  • Deeper questioning skills to identify inconsistencies and potential fraud
  • All key aspects of factoring operations and client support
  • How to supplement and enhance on-the-job learning and internal training programs

Who should attend

Program Level: Basic

Recommended for anyone who is new to the factoring industry.

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The Essential Factoring Overview

E-Learning Module

  • Historical development of factoring
  • Types of factoring - Traditional, Non-recourse/recourse, Maturity/Advance and where they fit client and market circumstances
  • Managing risk, credit insurance and refactoring
  • Working capital cycle funding needs
  • Working capital cycle in context of overall supply chain
  • Managing the risk in supply-chain funding, LOC, PO finance and their relationship to factoring
  • Overview of risk management strategies in factoring operations, notifications, verifications, concentrations etc.
  • Alternative ways to fund the working capital cycle - reverse factoring, etc.
  • Overview of the role of the account executive in the client cycle

90 Minute Virtual Workshop

  • Review of core material
  • Case studies to identify accounts
  • Case studies to illustrate value of factoring vs cost
  • Discussion of the factors that lead to fraud
  • Case studies demonstration how fraud was prevented
  • Discussion and Q&A

Operations Essentials for Factors

E-Learning Module

  • Managing risk through: ineligibles, verifications, UCC registrations, notifications, dilution, concentrations, credit limits
  • Making advances
  • Retaining and releasing reserves
  • Chargebacks and fee

90 Minute Virtual Workshop

  • Discussion exploring the nature of risk in operations
  • Managing risk at the beginning and at collect outs
  • Review of core material through practical example and discussions
  • Ineligibles exercise
  • Determining and managing dilution reserve

Underwriting Essentials for Factors

E-Learning Module

  • The 6Cs of Credit and applying the Swiss Cheese theory of risk mitigation
  • Information sources
  • The structure of a full credit report and discussion of each section
  • Financial Statement Analysis and key ratios to monitor
  • Key due diligence items

90 Minute Virtual Workshop

  • Discussion of case studies of credit reports on clients, to identify the key risks and how judgments are made in practice

Debtor Risk Management Essentials

E-Learning Module

  • General principles of debtor risk management
  • Information sources
  • Due diligence
  • Using 3rd party credit reports
  • Credit insurance and the 2-factor system
  • Setting and changing the limit
  • Monitoring

90 Minute Virtual Workshop

  • Discussion of how to reduce the risk of being unable to collect from account debtors

Relationship Essentials

E-Learning Module

  • Where relationships are important
  • What can go wrong in relationships
  • A little neuroscience that affects relationships
  • Key techniques for effective relationships
  • The three levels of difficult conversations

90 Minute Virtual Workshop

  • Discuss how to apply these techniques to practical situations through case studies

Collecting out Essentials

E-Learning Module

  • Key features of workouts and bankruptcy
  • How to prepare the ground through good documentation and UCC filings
  • When it is time to negotiate a forbearance agreement and the key elements of that agreement
  • Risk management steps to follow when a client moves out of formula
  • Navigating through chapter 7 and chapter 11 bankruptcies

90 Minute Virtual Workshop

  • Discussion between a leading attorney and a senior factoring executive as they explore the practical side of working with clients when they move out of formula or into bankruptcy. They will review the key situations which can lead to loss, and how to plan ahead to minimize their impact, as well as learn not just what the law says, but also how it can often be misunderstood by clients and their legal team