Orders go to your factor for credit approval, denials are flagged for review, and invoices from shipped goods are automatically assigned to the factor with proper remittance details. Integrated with CIT, Hilldun, Rosenthal, Wells Fargo, White Oak and more.
Factoring only works when the paperwork keeps up with the goods: the order approved by the factor before it ships, and the invoice assigned to the factor with the right remittance details the moment it exists. AIMS360 wires both steps into the flow you already run, from order entry to credit approval to shipment to an invoice your factor funds, with denials flagged for review instead of slipping through.
AIMS360 sends your orders to your factor for credit approval before goods move. Approvals come back onto the order, and denials are flagged for review so nothing ships on credit your factor never accepted. When approved goods ship, the shipped items are invoiced, and each invoice is automatically assigned to the factor with the proper remittance details, so your retailer pays the factor and your funding is never waiting on paperwork. The whole loop is integrated with the factor, not managed in a spreadsheet beside the ERP.
That is the feature. The rest of this page explains why those two moments, approval before shipping and correct assignment at invoicing, are where factoring relationships are won or quietly damaged.
A factor buys or finances your receivables: you ship a retailer, the invoice is assigned to the factor, the factor handles collection and, on credit-approved sales, typically takes the credit risk if the retailer cannot pay. In exchange, you get predictable cash and a professional credit department watching your customers, which matters in a business where you pay for fabric months before a department store pays for dresses.
This is not an exotic arrangement in apparel. Factoring grew up in the American garment trade, and it remains the standard financing structure for wholesale fashion because the industry combines long production cycles, seasonal cash needs and concentrated retailer credit risk. If you sell department stores and chains on terms, some factor somewhere is probably part of your world, either as your financing partner or your buyer's.
Two documents run the entire relationship: the credit approval, where the factor accepts the credit risk on a specific customer for a specific order, and the invoice assignment, where the invoice becomes the factor's receivable, carrying remittance language that tells the retailer to pay the factor. Both are exactly the kind of repetitive, deadline-sensitive paperwork software should be doing.
| Step | What happens in AIMS360 |
|---|---|
| 1. Order entered | A wholesale or EDI order lands in the same queue as everything else, tied to the customer whose credit the factor will be asked to approve. |
| 2. Sent for approval | The order goes to your factor for credit approval through the integration, no re-keying into a factor portal, no faxed order sheets. |
| 3. Approved | The approval comes back onto the order, and the order proceeds to allocation, picking and shipping with the approval on record. |
| 4. Declined | Denials are flagged for review, not buried. Your team decides deliberately: hold the order, request a smaller approval, take it as a house account at your own risk, or ask for payment up front. |
| 5. Shipped and invoiced | The items that actually ship are invoiced, so partial shipments invoice for what left the building, not what was ordered. |
| 6. Assigned automatically | Each invoice is assigned to the factor with the proper remittance details, and the factored receivable is tracked from there, integrated with the factor rather than reconciled against it. |
On a credit-approved sale, the factor has accepted the customer's credit risk under your agreement. Ship without an approval and that shipment typically rides on your own credit judgment instead, which is precisely the risk you pay a factor to carry.
In season, the pressure is always to ship. The gap between "the order is ready" and "did credit clear it" is where unapproved shipments happen, and the only reliable fix is making the approval part of the order's path rather than a separate errand.
A declined approval is information: your factor's credit team sees something. Flagging denials for review turns that into a deliberate choice by your team, on the record, instead of a shipment that quietly went out anyway.
When approvals live on the orders they belong to, questions like "was this shipment approved, when, and for how much" take seconds, whether they come from your CFO, your factor or an auditor.
A factored invoice is not just your invoice with a different mailing address. It carries the assignment: remittance details and notice language directing the retailer to pay the factor. When that language is right, the retailer's accounts payable pays the correct party and your funding follows the schedule in your agreement. When it is wrong or missing, familiar problems bloom: the retailer pays you directly and the payment has to be redirected, the factor's ledger and yours disagree, and the receivable ages while people trade emails about where the money went.
Because AIMS360 assigns invoices automatically at invoicing, the remittance details are correct by construction, on every invoice, including partial shipments and busy weeks. EDI retailers get the same treatment: the 810 invoice that flows to a retailer carries the same assignment discipline as a printed invoice, and it exists the moment the shipment does, because it is generated from the same record that picked and packed the goods against the 856 ASN.
Our financing integrations page lists the current factoring and financing partners. As of this writing that list includes CIT Commercial Services, First Capital Business Finance, Hana Financial, Hilldun, HSBC, Merchant Financial Group, Milberg Factors, Resolve, Rosenthal, SLR Business Credit, Webster Bank, Truist Financial, Wells Fargo and White Oak.
The names span the classic fashion factors that have financed the garment trade for generations and the bank-owned commercial services groups, which matters for a practical reason: brands change factors as they grow, and an ERP that already speaks to the factor you are moving to makes that transition a configuration change rather than a systems project. If your factor is not on the list, ask us. The approval and assignment workflow is the product; the connection is the plumbing.
A financing company that buys or finances your receivables: you ship the retailer, the invoice is assigned to the factor, and the factor handles collection and, on credit-approved sales, typically carries the credit risk under your agreement. Fashion has run on factoring for generations because production is paid for long before retailers pay for goods.
The factor's acceptance of a specific customer's credit for a specific order, requested before goods ship. In AIMS360 the order is sent to the factor for approval through the integration, and the response comes back onto the order, so shipping and credit stay in one flow.
The denial is flagged for review rather than buried. Your team then decides deliberately: hold the order, request a revised or smaller approval, ship it as a house account on your own risk, or ask the customer for payment in advance. The point is that a denial becomes a decision, not a shipment that slipped out anyway.
The step that makes the invoice the factor's receivable. The invoice carries remittance details and notice language directing your customer to pay the factor. In AIMS360, assignment happens automatically when shipped items are invoiced, with the proper remittance details for your factor on every invoice.
The payment instructions on the invoice: who to pay and where. On a factored invoice they point to the factor. Wrong or missing remittance details are how retailers end up paying the brand directly, which means redirected payments, mismatched ledgers and funding delays. Automatic assignment makes the details correct on every invoice by construction.
The current list lives on our financing integrations page and today includes CIT Commercial Services, First Capital, Hana Financial, Hilldun, HSBC, Merchant Financial Group, Milberg Factors, Resolve, Rosenthal, SLR Business Credit, Webster Bank, Truist Financial, Wells Fargo and White Oak. If yours is not listed, ask, because the workflow is the same and connections are added.
In broad terms, non-recourse means the factor absorbs the loss if a credit-approved customer cannot pay for credit reasons, while recourse means the risk stays with you. The definitions, carve-outs and what counts as a credit loss are set by your factoring agreement, so treat this as vocabulary, not advice, and read your agreement with your factor.
Yes. The 810 invoice generated for an EDI retailer follows the same flow: created from what actually shipped, assigned to the factor with the correct details, and consistent with the ASN and the physical cartons, because all of them come from one record.
Yes. Brands commonly factor their retailer receivables while running some accounts as house accounts on their own credit. The workflow respects that split: factored customers go through approval and assignment, house accounts do not, and both live in the same order and invoicing flow.
Invoices are generated for the items that actually shipped, and each invoice is assigned to the factor as it is created. A partially shipped order produces a correct, assigned invoice for the shipped units, and the balance follows the same path when it ships.
Sending orders for approval and assigning invoices happens through the integration, which removes the re-keying that makes manual factoring workflows slow and error prone. Your factor relationship, agreement and credit decisions remain exactly that, the factor's and yours.
Factor approvals and assignments are part of the AIMS360 workflow rather than a per-document meter, and AIMS360 charges no per document fees of its own. Your factoring costs, advances, fees and terms are between you and your factor, under your agreement.
Last reviewed 8 August 2026 by the AIMS360 product team. This page describes the AIMS360 software workflow for factor credit approvals and invoice assignments. It is not financial or legal advice: factoring economics, recourse terms, credit decisions and remittance requirements are governed by your agreement with your factor. The partner list reflects the AIMS360 financing integrations page as of this review and can change.
Bring your factor's name to a demo and we will walk the exact loop: order out for approval, denial flagged, shipment invoiced, invoice assigned with the right remittance details.
