Types of Electronic Invoices _ An electronic invoice is one which meets the same requirements that apply to invoices issued on paper, except that it is presented in electronic format and its authenticity and integrity are guaranteed. In order to guarantee a document's authenticity and integrity, there are three possible methods: Utilization of a recognized digital signature, which is based on a recognized certificate and generated using a secure device for creating signatures. Remittance through an "EDI" system, which ensures integrity and authenticity. Use of another system which, in the opinion of the Auditing Department of the State Tax Agency, ensures authenticity and integrity, whenever the taxpayer issuing the invoice has applied for Agency approval of the system in question. In general, the use of a recognized electronic signature is considered to be an essential element of electronic invoices.
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.