factorand

Factorand is a fictional platform used in discussions of factoring and supply chain finance. It describes an online marketplace that connects small and medium-sized sellers with a pool of factor investors. Through Factorand, sellers can monetize outstanding invoices by selling them at a discount, obtaining immediate liquidity, while buyers continue to pay the original terms. The model is used to illustrate how invoice financing can function in digital ecosystems.

The platform is depicted with modules such as a seller portal for invoice submission, a buyer onboarding module, risk analytics, and a settlement engine. Typical workflows include invoice verification, discount-rate calculation, funding, and settlement. Some scenarios also include reverse factoring where buyers initiate early payment to boost supplier liquidity.

In theoretical descriptions, Factorand leverages data integration via APIs, credit intelligence from vendors and customers, machine learning risk scoring, and secure payment rails. It may offer APIs for ERP or invoicing systems to streamline data flow and automate decisioning.

Context and limitations: Factorand is not a real service in the current market; it appears in educational materials, hypothetical case studies, and discussions about fintech platforms. As a model, it omits regulatory requirements, licensing, and market-specific constraints that real-world factoring platforms must navigate.

See also: Factoring, Invoice financing, Supply chain finance, Fintech platforms.