This depends on whether we talking about factoring with recourse or without recourse. If you are meaning without recourse, please see our article here in our accounting tutorial series for a full explanation.
However if we are dealing with a “recourse” situation then that is slightly different. In this case the journal entry would be:
Dr Bank (funds received)
Dr Finance Expense
Cr Refund Liability
The credit is applied to a refund liability because even though the receivables have been sold there is a direct recourse back to the seller. Therefore there is still a liability in place due to the IFRS 9 “Financial Statements” de-recognition criteria not being met – unlike the non-recourse situation where that liability is not in place.