Factoring Companies Guidebook

Invoices for training on the products sold, or for general training in a product or service.

Concerns

This type of invoicing does not necessarily represent a problem for us, where it is invoiced in arrears. Often training is pre-paid, either within the overall invoice for the product, or prior to the training being completed where it is invoiced separately. Training may be of an ongoing support nature, where it is provided regularly, or as and when required, over a pre-set period of time.

Invoicing for specific training may also subsequently be amended due to it not taking place on the due date or the numbers attending being reduced.

Training is also intangible and there may be subsequent credit claims for quality, even if invoiced in arrears.

Identification

Review the Client's and customers terms and conditions as well as invoices for any training or ongoing intellectual support.

Review the reasons for credit notes together with their historical levels and trends, for signs of pre invoicing and potential quality problems.

Treatment

Training invoiced in advance is not collectable debt and therefore should not be funded. Dependent upon the level of training in terms of overall turnover and levels of credit notes raised for 'non-performance', we may create a reserve, or reduce the PPF to accommodate any dilution to its security.

Copies of signed timesheets may also be required to support invoicing for numbers attending and that training has been invoiced in arrears.