@acc6207
Thanks for the details, all too many people do not include them
Whether the payment is a loan or not, depends on your factor agreement. If an invoice is unpaid, but you have been paid by the factor company - do you have to return the amount paid for that invoice? IF so then yes it is loan, it not then it is a payment
Assuming you do not have to return the amount paid for an uncollectable invoice ...
create a non inventory item called factor fee and select the factor fee expense account on the item screen
create a non inventory item called wire exp and select the wire or bank fee expense account on the item screen
When you sell the invoices to the factor company
create a credit memo using the factor fee and wire exp items, and enter the amounts
apply the CM to the invoices
You may have to split this up across several customers, depending how the invoices are listed
then you receive payment against the invoices which were factored and deposit
the invoices will remain open for the amount of escrow that was held back. When you release the escrow funds to your company, receive that final payment against the open invocies
