How Does Invoice Finance Affect My Balance Sheet?
Recourse factoring typically appears as a current liability. Non-recourse factoring can be treated as a true sale of receivables, removing debtors from your balance sheet. The accounting treatment affects ratios that banks and investors look at. Consult your accountant.
OM
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: 10 April 2026