This article is the fourth in a series where we cover the whole factoring invoicing process and how to design it using smart tech. You will learn how to automate manual repetitive tasks, gain deeper insights and increase control. Give your employees, customers, and their debtors a smooth user experience.
Five main steps
We’ve divided the invoicing process into five main steps. Each step has its own quirks and technical demands. We will go through each one of them and describe how to handle the subprocess optimally.
In this article we will focus on the fourth step: Payments. If you haven’t already read our first, second and third article in the series, you will find them here: Part 1: Financing Requests – Generating and approving invoices | Part 2: Channels for distribution of factoring invoices Part 3: Reminders & Collection for Factoring
– From bank transfers to BNPL
The most basic solution for invoice payment is using bank transfers. This is the most popular option when invoicing businesses. Usually, the invoice is interpreted by an accounts payable system and queued for payment through the bank. However, invoicing consumers is a whole ‘nother story.
Since most payments are done manually in the consumer space, there is a demand for flexible and smooth payment options. If you have a larger amount of B2C invoices in your portfolio, we recommend implementing some sort of payment solution connected to your invoices. Not only does this improve the debtor experience, but it also reduces the possibility of incorrect payments, and it reduces the DSO.
One of the trickiest parts when implementing a payment solution for your invoices, is how to connect it to the actual invoice. This is especially true when using letter invoicing. One solution might be adding a QR code and/or link in the invoice that opens up the payment options.
Our recommendation is to – no matter what the distribution channel – always link the invoice to a digital version where different payment options are available. We also recommend you looking into possible solutions for handling and matching incorrect payments.
This article only touch one part of the whole factoring process. The get the whole picture, download our free white paper on how to create an optimal Factoring Invoicing Process.
Assemble your own Factoring platform
At Quiddly we develop and license complete cloud based systems for Factoring, Invoicing and Debt Collection. Our concept is simple, but the solutions are advanced.