An accounts receivable aging report is a list of unpaid customer invoices grouped by how long they have been outstanding. It is one of the first documents a factor asks for.
How it works in factoring
Most aging reports use buckets measured from the invoice date or the due date, for example:
| Customer | Current | 31-60 | 61-90 | Over 90 |
|---|---|---|---|---|
| Customer A | $8,000 | $2,000 | ||
| Customer B | $3,500 | $1,200 | $600 |
Illustrative figures only.
Factors use the report to:
- See which customers pay on time and which lag
- Find invoices that may be disputed or uncollectible
- Judge how concentrated the receivables are in a few customers
- Decide which invoices are eligible; very old invoices are often excluded
During an ongoing relationship, the factor produces its own aging of purchased invoices, and the seller can use it to follow up on slow payers.
Why it matters
An aging report shows the quality of your receivables, not just the amount. A large balance mostly in the current bucket supports better terms than the same balance spread into older buckets.
What to check
- Whether your report ages from invoice date or due date, and say which when you send it
- That credits and partial payments are applied, so balances are accurate
- That customer names are consistent and match legal entities
Running and cleaning up your aging report before applying usually speeds up approval.