By Carressa Leblanc. Invoice. Published at Friday, March 22nd, 2019 - 21:55:21 PM.
Invoices can sometimes be an Accounts Payable (AP) clerk’s worst nightmare, especially if it takes hours and hours to manually process a single paper based invoice. Numerous things could go wrong with processing invoices manually; which can become very costly for business. Below we have listed five of the top invoice problems.
Invoice factoring lets you unlock cash that’s tied up in your unpaid invoices. Obtaining cash this way can be an easy, effective tool to solve small or medium size businesses financial challenges. Invoice factoring might be right for your business if you lack adequate working capital to maintain your operations or expand to the next level. Perhaps you’ve considered other options like bank loans, lines of credit or credit cards. But if your company doesn’t have enough financial stability or business credit, invoice factoring could be the perfect alternative to bank financing.
Electronic invoices contain all of the information required in a traditional, paper invoice in an encrypted format, including data on the sender and recipient, such as their name and Tax ID number, the date of the invoice, the sender’s legal address, the amount of the invoice and the percentage and amount of VAT, among other information.
Just about any company that generates commercial invoices can take advantage of invoice factoring. But is invoice factoring right for your business? It could be if your business is struggling to make ends meet because of long billing cycles, you’re wasting time collecting down payments from slow paying clients, you’re unable to take advantage of business opportunities due to lack of funds, or your business isn’t financially strong enough to obtain traditional bank financing.
Cash flow shortages can happen to almost any business, but invoice factoring can provide a quick, easy solution. Invoice factoring involves the selling of your account receivables or invoices to secure immediate working capital.
Include Your Terms – must be clear When do you expect the client to pay you? What happens if they miss the deadline? To be able to send follow-up or overdue notices or to charge interest, you need a rock-solid paper trail that no one can argue with.
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