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.
What is an Electronic Invoices or e_Invoices _ An electronic invoice (also called an e_invoice or eBill) is the result of a billing method that doesn't require a paper copy as a backup in order to demonstrate its authenticity. For this reason, an electronic invoice functions as a software_generated file, which compiles the information related to a commercial transaction, its payment and corresponding tax obligations.
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.