How you present your bills for payment to your clients may not seem as important as, for instance, the quality of your services or the products offered _ but actually it is. Are you still using the traditional invoicing? Your clients won't be too enthusiastic when forced to put aside a good portion of their valuable time in order to sort through your paper invoices, file them and maintain payment timelines. You, on the other hand, will have to put up with the hassle of managing all that paper: can you really afford to lose so much of your time on paperwork, when it's better spent working on other aspects of your business?
Numbers and Numbers and Records and Books _ must be trackable Referring to "invoice #9048," rather than "That invoice I sent you last month, I think on a Tuesday," is much easier to track for both you and your client. Assign numbers to your invoices systematically, consistently and chronologically. Some people number their invoices by year (for example, 2009043 would be the 43rd invoice of 2009). You could also specify a code for the project. For example, ABC06 would be the 6th invoice for the ABC project that you're currently working on. Having an invoice and project numbering system keeps everything in line.
Here's why: Approval for invoice factoring doesn't hinge on your company's credit history. Instead, it depends on the creditworthiness of your customers. Companies that purchase invoices will evaluate your customers based on their stability and payment track record. The invoice factoring company's main concern is determining how likely your customers will pay and how quickly. Apart from your customers meeting qualifications, your invoices must also pass certain criteria. There can't be any existing primary liens on your invoices, meaning no other company should have a claim on the payments once they arrive. This ensures that the company purchasing your invoices has a clear right to collect the funds in your place.