Advantages of Invoice Factoring Besides providing fast access to capital, invoice factoring offers a number of other important advantages. It gives you unlimited access to funds without adding liability to your balance sheet. Because invoice factoring isn't a loan, there's no debt or monthly payments involved. Plus, invoice factoring is a flexible arrangement because it doesn't require any long_term contracts. Additionally, invoice factoring makes it easier for you to offer credit terms to customers. This can help you increase your sales without negatively impacting your cash flow. Invoice factoring also can help you take advantage of the early payment discounts many vendors offer on bills within ten days. Ultimately, invoice factoring can help build business credit. The cash flow you create from invoice factoring can make it possible to pay your vendors on time and establish a stronger credit rating. And this can assist you with securing credit from other vendors and financial institutions.
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.
An additional benefit of the solution is that IMS reduces the possibility of duplicates being paid, the system includes validation that picks up possible duplicates and alerts the AP team. This will reduce the estimated Â£80ꯠ per year that was previously being spent on duplicate invoices. Summary of key benefits : Increased control _ Increased efficiency _ Reduction in AP headcount by 4 people _ Elimination of manual data entry _ Reduction in lost invoices _ Elimination of duplicate invoices _ Reduction in time spent locating and chasing invoices.