In order to comply with regulations and ensure that an electronic invoice has the same legal validity as a paper invoice, the corresponding electronic document must contain the same mandatory fields as any other invoice, must be signed with an electronic signature based on a recognized certificate and must be sent from one computer to another with the parties' mutual consent. This combination of factors provides a Telematic Invoice with sufficient reliability so as to indisputably guarantee its integrity and the authenticity of its origin.
Another significant benefit of invoice factoring is the professional debt collection service provided by the factoring company. The factoring company is equipped to handle debt collections professionally and efficiently, leaving your staff to focus on core activities such as creating more sales. In addition, this will reduce your costs associated with processing invoices and handling collections costs. How Invoice Factoring Works Invoice factoring is a transaction in which you sell outstanding invoices for immediate cash, instead of waiting the typical 30 days for the invoices to be paid. You receive an up_front, lump_sum payment for your invoices that's slightly less than face value. The advance payment which can be provided within as little as 24 hours is typically 70 to 90 percent of the total invoice value.
Electronic invoices encourage organizations to discontinue the use of paper invoices, replacing them with a digital version of an electronically_generated tax document, which has the same legal validity as the traditional version and preserves a faithful record of all commercial transactions. In this way, the entire billing process can be administered electronically. However, it is important to remember that amount of Value Added Tax must be included on every Invoice.