By Verifying Your Invoices, You get Working Capital Faster.
By working with factoring companies, businesses get the working capital and the cash flow they need, allowing their business to grow and thrive. A factoring company like Bankers Factoring (Bankers) will buy your invoices, providing safe and fast funds.
Invoice verification is an important process for factoring companies to ensure that they are buying valid and authentic invoices from their clients. The verification process helps to minimize the risk of fraud and non-payment of invoices. As invoices are the base of all factoring transactions, the most essential part of the factoring process is based on the invoice verification steps.
As a client of an invoice factoring company, it is important for you to understand the verification process, approval process, and what is involved.
What is the Verifying Invoice Process in Factor Finance?
- We confirm the product or service has been provided:
Factoring companies confirm that the goods or services have been fully delivered to the client and that each part of the transaction has been received. This can include things like delivery notes, goods receipt, timecards, certificates of completion, a contract or purchase order number, and any other supporting documents.
- We verify your customer’s creditworthiness:
The factoring company will verify the customer to make certain that they are a legitimate business with a good credit history, helping minimize the risk of non-payment. They may also check the customer’s payment history to ensure the likelihood of on-time payment.
- We review the invoice:
Factoring companies will check for any possible disputes and make sure all of the information is correct. Critical information such as ensuring the invoice amount, invoice number, payment terms and date, selling terms, due date, invoice details, sales tax, match the invoice to the PO, and description of the goods or services.
- We obtain approval from your customer:
Once the invoice is received and verified with your customer (or account debtor), funds are then wired to you based on your factoring advance rate formula.
All of this information is crucial to ensure that there are no misunderstandings about the invoices being processed, and that both you and Bankers Factoring are protected. It also saves you time as we are doing your accounts receivable department’s work.
The Invoice Verification Process
A good factoring company, like Bankers, will make the invoice verification process quick, easy, and painless, and there is no need to worry about it taking place. There are a few main methods that many factoring companies will use in order to verify invoices with your customers or the account debtors.
- Online vendor portal
Many companies, especially large ones, use online portals that show the status of invoices. This is a quick and easy way to view the necessary information, which is why many factors are partial to this method of invoice verification. Once the invoice is posted for payment, this makes it easy to buy.
Factoring companies often verify invoices via email. They use email communication to contact the customer’s accounts payable department, which in turn returns the invoice. This method is often used when online portals are not available.
- Phone call or fax
When online portals are not available and email is not accessible, factoring companies will call the client’s accounts payable department. This is another method of verifying invoices that is widely used by factoring companies.
All of these methods are very common in invoice factoring. If you want to know specifically what type of invoice verification the factor you are working with uses, it is as simple as asking. It can vary from situation to situation, and often factoring companies have a preferred method that they use.
Invoice Verification Time Frame
The time frame in which invoice verification takes place varies from factor to factor and can take anywhere from a few hours to several days. When you work with Bankers Factoring, we provide you with same-day working capital and complete the invoice verification process quickly and efficiently. This ensures that nothing stands in the way of getting you the cash you need.
Why is Invoice Verification Important for Non-Recourse Factoring Companies?
When you work with a recourse factoring company, you are responsible for the credit risk and potential for non-payment by your customer. However, a non-recourse factoring company will assume all of the risk associated with the transaction, therefore protecting your company from bad debt. These types of factoring companies take on the credit risk non-payment potential of your customers, providing security and safety for your funds.
Bankers Factoring is a non-recourse factoring company that provides this type of above-and-beyond service for you. If you present us with your honest service to your customers, we will provide you with an unlimited amount of capital and credit protection. Bankers Factoring understands your business needs, and we care about your business as if it were our own.
Learn more about what Bankers Factoring can do for you.
When working with a non-recourse factoring company, invoice verification is especially important. The invoice verification process is present with both recourse and non-recourse factoring companies, but it is even more important with non-recourse factoring companies. When the factoring company is taking on the risk, they need to be absolutely certain that the invoice is valid. Thoroughly verifying invoices and making sure there are no issues is what allows non-recourse factoring companies to take on the risk that they do.
Recourse vs. Non-recourse factoring companies.
What If the Invoice Cannot be Verified?
Sometimes, the problem arises when invoices cannot be verified. If this happens, the factor will immediately notify you and the client of the situation. This will allow the issue preventing the invoice from being verified to be resolved as soon as possible.
The factoring process cannot begin and be completed until the invoices are verified, so it is imperative that any issues preventing the invoices from being verified are resolved. When working with Bankers Factoring, if any issues arise, we will work to ensure that these issues are addressed and resolved in a timely manner within the necessary parameters.
With our famous soft touch with your customers and non-recourse factoring, factoring account setup is fast and smooth.
Complete the Bankers Factoring Application in just 7 minutes to get working capital now from Bankers Factoring, the best PO financing company and A/R factoring company.