Factoring and online invoicing - see two tools that will make it easier for you to run your business

Entrepreneurs have at their disposal several tools which, while maintaining access to the Internet, significantly facilitate running their own business. Factoring, i.e. the possibility of selling invoices and invoicing online, improves the financial situation of the company and allows for its faster development.

Factoring - online invoice financing

Running a company is connected with risk, resulting mainly from arrears in payments from customers. In some sectors, the problem is so widespread that it has become almost acceptable. Where payment terms range from 30 to even 90 days, e.g. in the transport or forwarding industry, factoring is a remedy.

Factoring - online invoice financing

The full success of a company can be achieved with at least two conditions - sales and regular payments from customers. The second one is met by factoring, i.e. selling invoices to the company or institution that takes over the receivables and in return pays the entrepreneur the invoice amount less its own commission. In practice, this is one of the ways of financing a company, which is an alternative to credit. There are several types of factoring, but each one has the same effect - the entrepreneur receives cash for his products or services, and the factor deals with collecting payments from the customer. Factoring service is more and more often available online, and the completion of formalities takes only a few hours.

Online invoicing and electronic invoicing

The extension of payment terms is also linked to the fact that invoices sent by post often do not reach customers or are delivered late. Many businesses are already using the functionality of online invoicing. Programs that allow you to issue invoices on the Internet also allow you to send them directly to the e-mail address of the customer. This significantly shortens the time of invoice delivery, and according to Polish regulations, online invoices are recognized as accounting documents on a par with paper invoices.

Online invoicing and spreadsheet invoicing

Issuing invoices, although seemingly easy, is in fact problematic, especially for entrepreneurs who are active vat taxpayers. Preparing a document confirming sales in a spreadsheet requires appropriate preparation, e.g. templates. Issuing online invoices in a cloud-based program allows you to use ready-made invoice designs of all types and send them to the customer, without printing, signing or visiting the post office.