This guide covers the finance companies supported in Netvisor and how to define Factoring account settings, add customers to Factoring invoicing, send Factoring invoices, and manage situations where a finance company other than those supported by Netvisor is used. Additionally, the guide includes instructions for recording Factoring payments, removing invoices from factoring, and disabling the factoring service.


Factoring process description

In the factoring process, the company transfers and pledges invoice receivables to the finance company and receives credit in return. Money (credit) is received immediately (usually the next day) for transferred invoices, e.g., 80% of the invoices approved for financing. When the buyer pays the invoice, the finance company remits the remaining portion, e.g., 20%.

 Invoice account: The invoice account shows the total balance of sent invoices, i.e., the collateral value of invoices (=sales receivables). Transferred invoices appear with a + sign and buyer payments with a - sign. The closing balance on the posting date is the amount of open sales receivables transferred to the finance company. 
 Finance account: The finance account shows the financed portion of the invoice account's invoices, e.g., 80% of the invoice account balance. The finance account tracks credit withdrawals, credit repayments through buyer payments, and fees and interest charged by the finance company for ledger management and financing. 
 Normal company bank account: The finance company pays the financing here. 

 Note regarding Nordea Rahoitus: Nordea Rahoitus remits the remaining portion, e.g., 20%, when the buyer pays the invoice. The closing balance on the invoice account on the posting date is the amount of open sales receivables transferred to Nordea Rahoitus, minus any credit notes. The finance account tracks fees and interest charged by Nordea Rahoitus for ledger management and financing. The closing balance on the finance account on the posting date is the customer's debt to Nordea Rahoitus if the balance is negative, or receivable if positive. 

 Invoice credit contract parties: 

The parties in the invoice credit contract are Nordea Rahoitus (financier), Seller (financier's customer) and Buyer (seller's customer).


Finance companies supported in Netvisor are:

  • Guida Invest Oy
  • Nordea Rahoitus Suomi oy
  • Op yrityspankki Oyj
  • Danske Bank A/S, Suomen sivuliike
  •  Svea (ended 31.3.2023) 
  • Riverty (formerly Arvato, formerly Gothia)  (ended 31.3.2023)
    - We discontinued support for Factoring invoicing for Riverty and Svea on 31.3.2023 due to low usage of these finance companies. After the support ended, we automatically updated the Netvisor Factoring invoicing settings to select "Other finance company" instead of Riverty. More information on unsupported finance companies can be found in the section "Using a finance company other than those supported by Netvisor" in this guide. 
  • In the future, for Svea, the e-invoice address will be set to Svea's e-invoice address for customers, but this should be confirmed with the finance company. In this case, no factoring settings are entered at all, and the invoice is sent as an e-invoice to Svea. Svea will process the invoice on their side and forward it to the customer. Svea will not send a detailed breakdown of transactions on the bank statement; instead, a lump sum of the transactions will appear. 

Electronic Factoring notifications can be sent to supported finance companies from Netvisor. If your company's finance company is not among those supported in Netvisor, the settings should be made according to the instructions at the end of this guide under "Using a finance company other than those supported by Netvisor".


Factoring account settings

Factoring account settings are defined in the Invoicing settings.

You can open the view by selecting Sales > Settings > Invoicing settings > Factoring accounts > New.

 Name: 

  • Enter the name of the finance company here.
  • Note that the finance company's name will appear on the invoice in the recipient field (for invoices sent from 9.10.2025 onwards).
  • In e-invoices, the information goes to the <EpiNameAddressDetails> tag.

 Finance company: 

  • Select from the dropdown menu the finance company with which the company has made a financing agreement.

 Account number: 

  • Enter the bank account in IBAN format to which the company's customers pay the financed invoices.
  • Make sure that the bank account is a Finnish bank account.
  • Use the account number specified in the agreement made with the finance company.

 Contract number: 

  • Enter the contract number of the financing agreement here.
  • Note that the maximum number of characters is 12.
  • The OP factoring contract number is 8 characters long.
  • If you want the Osuuspankki factoring reference number to be 20 characters instead of 18, add 00 in front of the contract identifier, making the contract number 00 + 8 characters long.

 Transfer description: 

  • Enter the transfer description received from the finance company in the form it was given.

 Accounting account: 

  • Select the accounting account from the dropdown menu to which incoming payments should be recorded.
  • Usually, account 1717 is used here.

 Setting language translations for transfer descriptions 

There are two options for setting transfer descriptions in different languages:

  • Option 1:
    • Save the factoring account in a different language as its own account if you want to use another language, for example English, on the factoring account.
    • Enter the description in the transfer description field in the desired language, for example in English.
    • Use this method especially when the same customers are invoiced in several languages.
  • Option 2:
    • If the customer's invoicing language is something other than Finnish, save the transfer description in that language on the customer card.
    • On the customer card, select the "Edit additional information" tab and enter the transfer description in the "Default text before invoice lines" or "Default text after invoice lines" field.
    • In this case, the transfer description is formed on the invoice according to the customer's invoicing language.
    • Note that in this case, not all language versions need to be saved in the Factoring account settings, and not all language versions will always appear on all invoices.
    • Use this method especially when the customer is always invoiced in English.

Adding customers to Factoring invoicing and creating invoices

If there are many customers to add, the addition can be done in bulk.

  1. Select Sales > Settings > Invoicing settings > Factoring accounts.
  2. In this view, click the number in the "Selected customers" column on the row of the desired factoring account.

This takes you to the customer listing, where you can search for the desired customers to be Factoring customers.

Technically, a foreign customer can also be linked to Factoring invoicing. However, it should be checked with your finance company whether they finance foreign customers. The same situation applies to individual customers. There is no restriction on using these with Factoring on the Netvisor side, but it should be confirmed with the finance company whether private individuals can be included in the service. 

Once a customer is linked to Factoring invoicing, the invoices for that customer will subsequently be created as Factoring invoices by default.

Factoring invoice number length

  • When creating a Factoring invoice, note that the invoice number must be 1–8 characters long.
  • If the invoice number is not 1–8 characters long, the system will give an error message when saving the invoice.

Once the invoice is saved, it can be seen on the invoice that it is a Factoring invoice.



Note on the time of invoice creation

  • If the invoice has already been created (either from an order or manually) before the invoice's customer is added as a factoring customer, the factoring notification will not be formed on the invoice, and the invoice will not go to factoring.
  • New invoices for that customer that have not yet been created will go to factoring once the customer is linked to Factoring invoicing.
  • If the factoring company changes and you update it on the customer card, the change will only affect newly created invoices.
  • If the customer already has an invoice created, the invoice will retain the factoring company that was selected when the invoice was created.

Sending Factoring invoices

Factoring invoices are sent according to the normal sales invoice sending process.

  1. First send the electronic Factoring notifications to the finance company in the sending process.
  2. Then send the customer invoices.

It is not possible to send the customer's invoice before the notification to the factoring company is sent. 


The material is sent via DanskeBank. Material formation runs are performed four (4) times a day, and materials are forwarded four (4) times a day. The last run starts around 20:00, so materials sent after that will not make it to the next night's run. All Factoring notifications sent to Danske during the day (up to that last run) are sent from Danske Bank every night around 2:00. If the material has been sent after the last run, it will wait for the next night's dispatch. The same schedules apply to both e-invoices and factoring notifications.

Using a finance company other than those supported by Netvisor

If a finance company other than those supported by Netvisor is used, the settings should be made as follows.

  1. Select Sales > Settings > Invoicing settings > Factoring accounts > New.
  2. In the Finance company field, select "Other finance company" from the list.

Name:

  • Enter the name of the finance company here.
  • Note that the name must be the official name of this finance company going forward.
  • The finance company's name will appear on the invoice in the recipient field (for invoices sent from 9.10.2025 onwards).
  • In e-invoices, the information goes to the <EpiNameAddressDetails> tag.
  • If you print the invoice manually, select invoice+bank transfer as the invoice printing format.
  • The finance company's name will then appear in the payment recipient section of the invoice's bank transfer part.


Note: Factoring notifications are not formed for invoices of other finance companies in the invoice sending process. The bank name shown on invoices (as the payment recipient) is the Factoring account name given in the Factoring account settings.


  Account number:  

  • Enter the bank account in IBAN format to which the company's customers pay the financed invoices.
  • Use the account number specified in the agreement made with the finance company.

  Contract number:  

  • Enter the contract number of the financing agreement here.
  • Note that the maximum number of characters is 12.

  Transfer description:  

  • Enter the transfer description received from the finance company in the form it was given.

  Accounting account:  

  • Select the accounting account from the dropdown menu to which incoming payments should be recorded.
  • Usually, account 1717 is used here.

Recording Factoring payments

If the account to which the finance company delivers the payments for financed receivables is company-specific, it is advisable to make a payments traffic agreement, which agrees on machine-readable reference payment material.

  • When the payments traffic agreement has been made, payments arriving from customers are automatically acknowledged also for financed invoices.
  • Tighter instructions for handling this can be found here. 

The payments traffic agreement can be made with Nordea Rahoitus.

  • Agree that the bank statement is needed in the program in KTO format.
  • Agree that the reference material is needed in KTL format.
  • Note that no other material format works.
  • Make sure that the factoring account has been established in the Factoring accounts view.


If there is no company-specific account, payments must be manually acknowledged to invoices. (If the company is not a supported factoring company, in section 2 of the guide, account 1718 is then the normal sales receivables account 1701.)

Instructions for manual handling of payments can be found here.

Removing a single invoice from factoring

If a customer's single invoice is to be sent directly to the customer and not to the factoring company, you can remove the Factoring account selection from the customer's customer card.

  1. Open the customer's customer card.
  2. Select the "Edit additional information" tab.
  3. Remove the selection in the Factoring account field.


Mass removal of customers from factoring

Customers can also be removed in bulk from Factoring.

  1. Select Sales > Invoicing settings > Factoring accounts.
  2. For the desired factoring company, click the "Selected customers" section, which shows the number of customers linked to it.
  3. Remove the checkmark from those customers from whom you want to remove the factoring account.
  4. If you want to remove the factoring account from all, remove the checkmark from all rows.
  5. From the customer listing Functions menu, select "Add factoring account to selected customers".
  6. Confirm the action. The factoring account will be removed from those customers who did not have the checkmark selected.

Disabling factoring

If the factoring service is discontinued, the marking that the customer belongs to Factoring invoicing should be removed from the customer card for customers linked to the Factoring account.

  1. Open each factoring customer's customer card separately.
  2. Select the "Edit additional information" tab.
  3. Remove the selection in the Factoring account field.

If the factoring account has not been used on any invoice, the account linked to factoring can be removed.

  1. Select Sales > Invoicing settings > Factoring accounts.
  2. Click the name of the account to be removed.
  3. Select the Delete button.
  • To successfully delete the account, first remove the factoring account from all customer cards.
  • If the factoring account has been used on sales invoices, it cannot be completely removed.
  • If necessary, factoring accounts that have been disabled can be renamed.





Frequently asked questions

Question: What happens in the factoring process and how is the financing allocated to invoices?

Answer: In the factoring process, the company transfers and pledges invoice receivables to the finance company and receives credit in return. Money is usually received into the account the next day, for example 80% of the invoices approved for financing. When the buyer pays the invoice, the finance company remits the remaining portion, for example 20%.

Question: How do I define the Factoring account settings in Netvisor?

Answer: Define the Factoring account settings by selecting Sales > Settings > Invoicing settings > Factoring accounts > New. Enter the finance company's name, select the finance company from the dropdown menu, add the contract bank account number in IBAN format, the contract number (maximum 12 characters), the transfer description received from the finance company, and the accounting account to which payments are recorded (usually account 1717).

Question: How do I link a customer to Factoring invoicing and what should I consider regarding the invoice number?

Answer: Link the customer to Factoring invoicing via the customer card or in bulk using the "Selected customers" function in the Factoring accounts view. Once the customer is linked to Factoring invoicing, the customer's invoices will be created as Factoring invoices by default. The invoice number must be 1–8 characters long; otherwise, the system will give an error message when saving the invoice.

Question: How are Factoring invoices sent and in what order?

Answer: Factoring invoices are sent according to the normal sales invoice sending process. First send the electronic Factoring notifications to the finance company, and only after that send the customer invoices. The customer's invoice cannot be sent before the notification to the factoring company.

Question: What should I do if a finance company other than those supported by Netvisor is used?

Answer: Create a Factoring account by selecting Sales > Settings > Invoicing settings > Factoring accounts > New and select "Other finance company" as the finance company. Enter the finance company's official name, the contract bank account number, the contract number, the transfer description, and the accounting account. Note that Factoring notifications are not formed in the sending process for invoices of other finance companies, and the payment recipient shown on invoices is the name given in the Factoring account settings.

Question: How are Factoring payments recorded and when do I need a payments traffic agreement?

Answer: If the account used by the finance company is company-specific, it is advisable to make a payments traffic agreement for machine-readable reference payment material. In this case, payments are automatically acknowledged to financed invoices. In the payments traffic agreement with Nordea Rahoitus, agree on the bank statement in KTO format and the reference material in KTL format. If there is no company-specific account, payments must be manually acknowledged to invoices according to a separate instruction.

Question: How do I remove a single invoice from factoring?

Answer: If you want to send a single invoice directly to the customer, remove the Factoring account selection from the customer's customer card. On the customer card, select the "Edit additional information" tab and remove the selection in the Factoring account field before creating the invoice.

Question: How can I remove several customers from factoring at once?

Answer: Select Sales > Invoicing settings > Factoring accounts and click the "Selected customers" section for the desired factoring company. Remove the checkmark from those customers from whom you want to remove the factoring account, and use the customer listing function "Add factoring account to selected customers". The factoring account will be removed from those customers who did not have the checkmark selected.

Question: How is the factoring service completely disabled in Netvisor?

Answer: First remove the Factoring account marking from the "Edit additional information" tab on the customer card for all customers linked to the Factoring account. After this, you can remove the Factoring account by selecting Sales > Invoicing settings > Factoring accounts, clicking the account name and selecting Delete, if the account has not been used on any invoice. If the account has been used on sales invoices, it cannot be completely removed, but you can rename the disabled Factoring account if necessary.

Keywords: Factoring, finance company, Factoring invoicing

This article has been translated using an AI-based translation tool. The contents or wording of these instructions may differ from those in other instructions or in the software.


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