A factoring company requires a completely different type of software to post invoices that it will fund/purchase. The software calculates fees, account debtor data, reserves and daily reports on collected invoices.
A client requires a different type of invoicing and accounting system like MyBizPad™ that may include inventory control, purchase order creation, pay vendors, post payments and the invoice factoring module will create a batch of invoices to send to the factoring company for funding.
Due to the requirements in preparing the invoices for funding to a factoring company, the business owner must prepare the invoices with merged documents and totals. Merging the documents with signed off invoices, signed off proof of delivery documents and then compiling all the invoices with a total for submission can be a time consuming task. The more invoices the business has, the more time and work related to this task becomes. Our invoice factoring software will be able to submit all invoices, merged documents and a Schedule of Accounts with totals under 1 minute to the factoring company for funding.
The same can go for the factoring company, just as all these invoices come in, it takes a while for the back office to post manually all these invoices and review them one by one.
MyBizPad™ was created to streamline the process for both the client and the factoring company. As the client is generating invoices on pre-selected customers it has agreed to pledge for invoice factoring, The system automatically stores them in a special folder in the factoring module, once the client is ready to submit invoices for funding, he selects the invoices and sends them electronically to the factoring company batched up with a Schedule of Accounts, (SOA) and a total.
The factoring company receives an Excel type of file for easy uploading into their software, eliminating manual entry. The second file is one PDF file containing all the invoices with backup documentation and the third file is the SOA with the totals.