Aging reports

An aging report groups unpaid invoices by how long they have been outstanding.

Key takeaways
  • An aging report reveals payment behavior, concentration, and slow-paying customers.
  • Factors use aging to assess risk before approving invoices and setting credit limits.
  • Older invoice buckets typically receive more scrutiny and may be ineligible for funding.
  • Regularly reconcile the aging report with customer payment records.

An aging report groups open invoices by days outstanding. It is one of the first documents a factor uses to understand payment behavior.

Aging also shows concentration, slow-paying customers, old invoices, and possible dilution risk.

Reading the buckets

Common buckets include current, 1-30, 31-60, 61-90, and over 90 days. Older buckets usually receive more scrutiny.

Related reading

Sources

  • International Factoring Association - International Factoring Association. Accessed 2026-05-19. Industry association source for factoring terminology and industry context.
  • Secured Finance Network - Secured Finance Network. Accessed 2026-05-19. Industry education source for secured finance and asset-based lending context.
  • Uniform Commercial Code Article 9 - Uniform Law Commission. Accessed 2026-05-19. Reference for secured transactions concepts including receivables and filings.
Financial disclaimer. This page is educational only and is not financial, legal, tax, accounting, or credit advice. Factoring terms vary by provider and contract. Read the full disclaimer.