How CFDI Factoring Works and What Documents You Must Issue

Factoring is a useful financial service for businesses that need immediate cash flow without waiting for customers to pay on credit terms. But when using factoring in Mexico, it’s crucial to issue the correct CFDI documents to stay compliant with SAT regulations.

In this article, we’ll break down how factoring works and which digital tax receipts are required at each stage.

What is factoring?

Factoring allows a business to sell its accounts receivable (invoices) to a factoring company or financial institution. In return, the business gets immediate funds—usually at a discount—while the factoring company collects from the final customer later.

This helps improve cash flow without taking on debt.

Practical example

A company sells products worth $100,000 MXN with 90-day payment terms.

Instead of waiting, the company sells the invoice to a factoring institution. The factor pays $95,000 MXN up front. Once the final customer pays, the factoring company recovers the full amount and earns a fee.

What CFDI documents are required in a factoring process?

To ensure transparency and tax compliance, the following digital invoices must be issued:

1. Income CFDI (Original invoice)

• Issued by: The seller

• Received by: The final customer

• Key details:

• Use payment method PPD (Deferred or installment payments)

• Must reflect the total amount of the sale

2. CFDI with Payment Complement

• Issued by: The seller

• Received by: The factoring company

• Key details:

• Issued when the factoring company advances the payment

• Must include the UUID of the original invoice

3. Income CFDI for Invoice Collection

• Issued by: The factoring company

• Received by: The final customer

• Key details:

• Issued when the final customer settles the invoice

• Use PUE as payment method (Paid in one installment)

4. Expense CFDI for Adjustments or Discounts

• Issued by: The factoring company

• Received by: The seller or the final customer

• Key details:

• Used in cases of returns, discounts, or operational adjustments

• Must reference the UUID of the related CFDI

📌 These formats are also defined in the official Payment Complement filling guide issued by SAT.

Why is it important to issue these CFDIs correctly?

• ✅ To stay compliant with SAT requirements

• ✅ To ensure accurate accounting records

• ✅ To avoid errors or inconsistencies during tax reporting or audits

Legal framework

Factoring and its related CFDIs are regulated by:

• Federal Tax Code (CFF)

• CFDI 4.0 – Annex 20

• Current Miscellaneous Tax Resolution

• General Law of Credit Instruments and Operations (LGTOC)

Automate your factoring CFDIs with our API

If your business uses factoring and needs to issue compliant digital tax receipts, Facturapi can help.

With our electronic invoicing API, you can:

• Automate CFDIs with payment complements

• Stay fully compliant with SAT standards

• Integrate factoring seamlessly into your billing system

Explore our API and take control of your cash flow with smarter invoicing.