A schedule of accounts (also called a schedule of receivables or assignment schedule) is the document a business uses to submit a batch of invoices to its factor. It lists each invoice and contains the seller's signed confirmation that those invoices are being sold and assigned.
How it works in factoring
A schedule usually shows, for each invoice:
- Customer name
- Invoice number and date
- Invoice amount
- Payment terms
The schedule refers back to the factoring agreement and typically repeats key warranties: the work is complete, the amounts are owed, no other party has a claim on the invoices, and the seller knows of no disputes. Copies of invoices and delivery documents are usually attached.
Once the factor accepts the schedule, it verifies the invoices, approves the customers and funds the advance. Many factors now accept schedules through an online portal or by uploading data from accounting software, but the legal function is the same.
Illustrative example: A staffing company submits a weekly schedule listing 14 invoices totaling $48,000, with approved timesheets attached. The factor funds the invoices it approves and notes any it holds for more information.
What to check
- Who in your business is authorized to sign schedules
- What supporting documents the factor requires with each submission
- The cutoff times for same-day or next-day funding
- How rejected or partly funded invoices are reported back to you
Because each schedule repeats your warranties, double-check every line before signing.