- 25 Sep
Online Invoice Factoring
Online invoice factoring can have a number of different meanings, each of which I have addressed below. In general terms, factoring normally refers to a facility that provides prepayments against outstanding sales invoices, together with a credit control service to collect those payments in.
The modus operandi of factoring facilities will be very different depending upon the provider (called a factor) that you choose.
Online Access To Factoring Services
If you are looking for online access to factoring services there are providers that have web based, and app based, new customer approval processes. A very small minority can be completed without any face-to-face contact, however that is not the norm within this sector. You can initially access the services of many factors electronically i.e. via web interfaces to request a quote, however in most cases there will be face-to-face contact following the initial contact.
Currently we are only aware of one factoring company that will allow you to sign their agreement electronically.
Online Management Of Factoring
If you are looking to manage your factoring arrangement online, most providers are able to accomodate this, and many insist upon it. The majority of factoring companies have an electronic interface, most work via the web. They will allow you to upload invoices, or your entire sales ledger, check balances, and draw down money from your factoring facility to your bank account. The amount of additional functionality available via the web will vary between providers.
In some cases the facility can be automated to the extent that your sales ledger uploads automatically in the background, from accounting packages such as Sage, without you needing to become involved in the process. At the other end of the available functionality, you choose individual invoices to upload to the factor.
What Do You Need?
So you will appreciate that "online invoice factoring" can be interpreted in a number of different ways, a broker service such as ours will help you find the service that best matches your requirements.
Read our general: Guide To Receivables Finance. This explains all the various types of facility that are currently available.
See our previous article: Invoice Factoring Online which provides a similar explanation about the modus operandi of online invoice factoring.