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title: "Factoring - Cheques"
canonical: "https://wiki.soft1.eu/space/SS5EN/189268671/Factoring%20-%20Cheques"
format: markdown
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#### <span style="color: #0000ff">cfGetting Started with Factoring</span>

**Factoring** is a legal agreement based on which, the company (supplier-assignor) assigns to a factor (usually a Bank/Factoring house) <span style="color: #6a6a6a">the collection/ discounting of his customer receivables. </span>Factoring provides short-term financing, which can be achieved with [invoices](https://soft1wiki.atlassian.net/wiki/spaces/SS5EN/pages/226295934)[ ](https://wiki.soft1.eu/pages/viewpage.action?pageId=233046035)or cheques factoring.

<span style="color: #172b4d">Use SOFT1 ERP to manage the </span><span style="color: #172b4d">**factoring **</span><span style="color: #172b4d">process, starting from the Contract agreement with the factor, then assigning the cheques and defining the Commission/ fees agreed by both parties. Also, a part of the value of the cheques will be discounted, which can be Forecasted and Reimbursed</span> (until a respective notice will be sent by the factor). Finally, with the Commission/ fees included and once the cheques are paid, the remaining balance can be reimbursed. 

<span style="color: #333333">See below a how-to guide for Factoring configuration & operation in SOFT1 ERP.</span>  


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> ⚠️ ### Cheque transaction
> ⚠️ 
> ⚠️ The above-selected** Cheque Transaction** does not affect the cheque's **Balance** while the cheque's **Status** (Assigned to Bank), will be set as <span style="color: #333333">pending.</span>
> ⚠️ 
> ⚠️ ![image](media://e7530b5f-0431-4e2a-93ee-21e671accc11)

  


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> ⚠️ ### Cheque transaction
> ⚠️ 
> ⚠️ The above-selected** Cheque Transaction** (see example) decreases the cheque's **Balance **while the **Status **(e.g. Is Paid) will be set as settled.
> ⚠️ 
> ⚠️ ![image](media://fd1e0738-66ad-45a5-a5c1-26f80a7b0d67)

  


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