In this article, we’ll focus exclusively on what KSeF means for invoice factoring.
What does KSeF change for invoice factoring?
Moving away from paper and traditional electronic invoices in favour of a unified, centralised system is a massive shift – and one that was always going to shake up factoring. Businesses can no longer receive an invoice by hand or email and simply forward it to their factoring provider for financing. This comes with certain limitations, but also real advantages – chief among them faster factoring turnaround times. Why?
KSeF is a nationwide, centralised invoice database. Eventually, every VAT invoice will be filed there, making it instantly accessible – no lost documents, no delays, no more “I never got that email” excuses.
Preparation is key
Introducing KSeF into the world of invoice factoring is a major shift – one that will have a positive impact on risk assessment, among other things. The standout change is factors gaining access to reliable, real-time invoice data, enabling faster financing decisions and paving the way for greater automation.
For businesses, this means quicker approvals and easier access to factoring services down the line – though it will require the factor to be correctly identified in KSeF-issued documents, along with the necessary permissions being granted.
Dorota Mazur, Director of Partner Network Development, PragmaGO
To truly reap the benefits of KSeF in a factoring context, every party involved needs to be ready for it – the factor, the client, and the invoice recipient. When all three are operating smoothly within KSeF, everyone will feel the difference in speed.
No more manipulation?
Changing an invoice’s date or content without leaving a trace in the system is simply not possible. KSeF is built on transparency and leaves no room for irregularities. Any amendment must go through a formal correction process, which means disputes over invoice content should become a thing of the past.
Important!
That said, KSeF is not immune to fraud or honest mistakes – and new workarounds will likely come to light over time. One thing to keep in mind right now: always make sure your factoring company is listed in the third-party field – including when filing corrections. Otherwise, the correction may go unnoticed by the factor.
How invoice verification works in KSeF
For obvious reasons, KSeF changes the way invoices are verified. Since the system’s introduction, the primary verification element has become the KSeF number – a 35-character invoice identifier.
The next step: automating the factoring process
Invoice digitisation opens the door to automating factoring workflows. Strong collaboration between factors and their clients in this area could result in turnaround times that go beyond even today’s standards.
Factors are currently working on systems that automate invoice processing – meaning businesses may soon be looking at financing in minutes rather than hours.
How to prepare for invoice financing in the KSeF era
Here are a few ways to get your business ready to make the most of factoring now that KSeF is mandatory.
In what situations should privileges be revoked?
Bear in mind that KSeF permissions can be granted at different levels:
- invoice access,
- issuing structured invoices,
- granting and revoking permissions.
Second: share KSeF identifiers with your factor
Passing KSeF numbers to your factor’s system will make transaction identification much easier. Keep in mind, however, that enabling this automatically may require developer involvement to set up the right connections between your system and your factor’s.
Important!
Make sure you share KSeF IDs for both invoices and any corrections made to them.
Also worth remembering: invoice access permissions carry significant weight. Anyone with that level of access can view and download invoices – meaning they have visibility into every transaction your business makes.
Third: make sure your invoice schema is filled in correctly
A factor is a third party involved in the transaction, and KSeF invoices need to reflect that. The factor’s details should be entered in the “Podmiot 3” (Third Party) node. To fill the invoice in correctly, you must assign the factor the role of “1 – Factor” – this is a mandatory requirement to avoid settlement issues.
Important!
If the factor is not listed in the “Podmiot 3” node, the document will not be visible to them – keep this in mind every time you issue an invoice in KSeF.
The FA(3) structure includes a dedicated field for the factor’s bank account number – this is the “FA/Platnosc/RachunekBankowyFaktora” node.
Also remember to include a reference to the receivables assignment in the invoice. To keep information flowing smoothly, it’s worth agreeing with your factor on where exactly to enter this – for example in the “Additional description” field.
Fourth: set up automatic invoice submission and retrieval in KSeF
To speed up and streamline the factoring process within KSeF, get set up for automatic invoice submission and retrieval. Don’t forget to also enable automatic downloading of invoices issued by your factor.
Fifth: put offline invoicing procedures in place
This is a general recommendation for all KSeF users, but it’s worth flagging in the context of factoring specifically. Having well-configured procedures that ensure invoices are uploaded to KSeF immediately after any downtime is the best way to guarantee a smooth resumption of factoring transactions.
Factoring and KSeF – what are the potential benefits for clients?
Our goal is to significantly speed up and simplify the financing process for our clients. KSeF gets us to the next level.
When issuing an invoice, it’s possible to flag the factor as a third party and include their account number directly in the document. Once this is done correctly in KSeF, it will enable automatic document import and eliminate the error-prone OCR process. On top of that, the invoice will appear in the Client Panel ready for financing the moment it’s issued.
The result? Funds reach the client’s account much faster.
Marcin Walczuch, Product Owner, PragmaGO
Businesses using factoring under KSeF can expect a range of positive changes in the coming months and years – how quickly they materialise will depend on how fast the factoring market adapts to the new possibilities.
- New factoring products – full automation, built on close collaboration between factors and their clients, will open the door to new financial products – such as instant factoring or cashflow management tools that blend elements of both standard and reverse factoring.
- Faster verification – with invoices checkable by KSeF identifier, verification systems should become quicker and more efficient.
- Faster payouts – a shorter verification process means a shorter process overall. Funds could be released faster, similar to the guaranteed advances already offered by some factors – except this time, businesses could receive their full factoring advance in a fraction of the time.
KSeF and factoring – what challenges does it pose for businesses?
Like any major technological shift – and KSeF is certainly one of the biggest – this change demands adaptation. Moving to a digital model means new obligations, and getting into the habit of meeting them consistently is half the battle.
The key issue is the requirement to identify the factor and include the relevant details in every KSeF invoice. This needs to be done meticulously to avoid settlement problems:
- the factor’s details in the “Podmiot 3” node,
- the factor’s bank account number in the “FA/Platnosc/RachunekBankowyFaktora” node,
- a reference to the receivables assignment in the field agreed with the factor (e.g. “Additional Description”).
Businesses should also pay close attention to data accuracy. Every invoice correction has to go through KSeF, which means errors can disrupt the factoring process.
If you use reverse factoring, the most effective way to keep things running smoothly is to automatically pass the KSeF identifiers of supplier-issued invoices on to your factor.
Summary
Among the many changes brought by the introduction of KSeF, several are particularly significant for factoring clients: faster invoice verification and the prospect of fully automated factoring further down the line.
These benefits will only materialise, however, if you correctly identify the factor in the document structure, include their bank account number, and add a clear reference to the receivables assignment. Without this, the factor won’t see the invoice in the system – which, rather than speeding things up, will bring the whole process to a halt.
Frequently asked questions
What new obligations does KSeF bring for factoring clients?
Businesses must identify the factor on every KSeF invoice by including:
- the factor’s details in the “Podmiot3” field,
- the factor’s bank account number in the “FA/Platnosc/RachunekBankowyFaktora” field,
- a reference to the receivables assignment in the location agreed with the factor.
How to best prepare for factoring in the KSeF era?
To ensure your business can use factoring smoothly within KSeF, take the following steps:
- grant your factor permission to retrieve invoices from KSeF,
- share KSeF identifiers with your factor – ideally automatically,
- make sure your invoices are filled in correctly in the system,
- set up automatic invoice submission and retrieval in KSeF,
- put procedures in place for KSeF downtime.
What benefits does KSeF already offer factoring clients?
- Faster and more straightforward invoice verification.
- Less room for manipulation.
- Instant invoice delivery – no risk of documents going missing or contractors claiming they never received them.
What might change in the future for businesses using factoring thanks to KSeF?
- Faster verification process.
- Quicker payouts.
- New factoring products with more favourable terms.
