## F.14 Treatment of Factoring Transactions

## Source details

**Canonical URL:** [F.14 Treatment of Factoring Transactions](https://www.imf.org/-/media/files/data/statistics/bpm6/fitt/fitt-f14-global-consultation-questionnaire-unsd.pdf)

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### Overview
- Purpose: Global consultation questionnaire prepared by the Financial and Payments Systems Task Team to gather coordinated answers from national agencies responsible for national accounts and balance of payments compilation (for example, National Statistics Office and Central Bank).
- Instructions: Respondents are asked to provide information for Question 1; indicate which area the response concerns in Question 2; rate relevance in Question 3; and respond to conceptual and practical implementation questions. Contact emails provided: STABPM6Update@imf.org and sna@un.org.
- Key administrative items:
  - Question 1: respondent identification fields (Country; Institution/Organization; Name; Position/Title; Email).
  - Question 2: select one of: National Accounts; Balance of Payments; Both National Accounts and Balance of Payments.
  - Question 3: select relevance: High Relevance; Medium Relevance; Low Relevance; Not Relevant.

### Conceptual Issues / Recommendations
- Scope note: Factoring transactions are widely used in domestic and international trade as part of supply chain finance. The Guidance Note (GN) proposed four options to address Issue 1: Treatment of Factoring Transactions and Claims (Option 1 and Options 2.1–2.4) and three options to address Issue 2: Treatment of Recourse Factoring (Options 3.1–3.3). Factoring carried out by nonfinancial parties are not within the scope of the GN.
- Question 4: asks whether respondents agree with the GN proposal to reject Option 1 (the status quo) and instead consider other options discussed in the GN for the statistical treatment of the non-recourse and the recourse factoring. Response choices: Yes; No.
- Options presented for non-recourse factoring (Question 6):
  - Option 2.1 The factoring claim against the debtor is treated as other accounts receivable, and the factoring income as fee paid by the supplier.
  - Option 2.2 The factoring claim against the debtor is treated as other accounts receivable, and the factoring income as interest paid by the supplier.
  - Option 2.3 An indirect financing by the factor to the debtor is assumed and is treated as a loan, and the factoring income as interest paid by the debtor.
  - Option 2.4 The indirect financing by the factor to the debtor is treated as a loan, and the factoring income as a fee paid by the supplier.
- Options presented for recourse factoring (Question 8):
  - Option 3.1 Recourse factoring is treated in the same manner as non-recourse factoring.
  - Option 3.2 Recourse factoring is treated as a loan provided to the supplier.
  - Option 3.3 The invoice should be divided into three parts, and different treatments should be applied to them.
- Instrument reclassification question (Question 10): whether reclassification from trade credit to loans/other accounts receivable should be recorded as a transaction in the financial account rather than as other changes affecting positions. Response choices: Yes; No.
- Guidance scope question (Question 12): whether other types of supply chain finance need further guidance in BPM7 or its Compilation Guide (BPM7CG). For each: Yes; No.

### Practical Implementation
- Source-data availability questions for non-recourse factoring (Question 14): for each option respondents indicate access to relevant source data:
  - Option 2.1 Yes / No
  - Option 2.2 Yes / No
  - Option 2.3 Yes / No
  - Option 2.4 Yes / No
- Source-data availability questions for recourse factoring (Question 16): for each option respondents indicate access to relevant source data:
  - Option 3.1 Yes / No
  - Option 3.2 Yes / No
  - Option 3.3 Yes / No
- Implementation challenges: Question 15 and Question 17 invite respondents to indicate challenges in implementing the proposed statistical treatments for non-recourse and recourse factoring, respectively (open text).
- Transparency and publication consent (Question 18): respondents asked whether they give consent that their response can be published. Response choices: Yes; No.

### Response Opportunities and Supporting Inputs
- Several questions request supporting arguments or explanations in open text:
  - Question 5: arguments supporting response to Question 4.
  - Question 7: arguments supporting response to Question 6.
  - Question 9: arguments supporting response to Question 8.
  - Question 11: arguments supporting response to Question 10.
  - Question 13: arguments supporting response to Question 12.
  - Question 15 and Question 17: practical challenges for implementing proposals.
- Recommendation implicit in questionnaire design: coordinated answers between national accounts and balance of payments compilers are encouraged; if only one agency provides an answer, indicate that in Question 2.

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_Source: https://www.imf.org/-/media/files/data/statistics/bpm6/fitt/fitt-f14-global-consultation-questionnaire-unsd.pdf_