How Does Invoice Finance Appear in My Accounts?
Recourse factoring typically appears as a current liability (amount owed to the factor) offset against trade debtors. Non-recourse factoring can be treated as a true sale of receivables, meaning debtors are removed from the balance sheet. Always consult your accountant — treatment affects your balance sheet ratios and may affect banking covenants.
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Oliver Mackman
Director, Market Invoice
Oliver leads Market Invoice's editorial and comparison research. With a background in UK commercial finance, he oversees provider analysis, rate verification, and industry reporting across all verticals.
Last reviewed: 6 April 2026