Future receivables sales


Ahn

Joined
Mar 24, 2022
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Viet Nam
Hello everyone, I need your help.
Our company signed an agreement, which shows that our company will sell, assign and transfer to our partner, and our partner will purchase all of right, interest in and to a specified amount of future receivables. The agreement says that this is a purchase and sale transaction, not a loan. The partner sets a purchase price and advance to us an amount, say USD100k, then charge 6% on such amount, i.e our total payable is 106k. Then on each day, the partner will withdraw from our bank account an amount based on an applicable percentage of our daily receipt until it receives full 106k. I would like to ask whether the nature of transaction is revenue share and the entry journals should be:
Debit Bank/Credit Payables: 100
On each day of payment: for example the principle is 10 and interest: 1
Debit Payable: 10
Debit Revenue: 1
Credit Bank: 11

Is my understanding correct? Or should I treat the transaction as loan?
Thank you so much for your kind support.
 
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