Before advancing funds on an invoice, factoring companies always call or email the payer to ensure that the invoice has been received and that it is accurate. This “invoice verification” process can concern clients because it requires the factoring company to speak directly with the customer. Because of this direct contact, clients often wonder if verifications are absolutely necessary.
Actually, verifications are both important and necessary because they help ensure that factoring companies only fund correctly-issued invoices. This measure helps clients avoid potentially costly problems later.
However, most factoring companies understand clients’ apprehensions about contacting customers and do so in a professional manner. Many factors position the purpose of the call correctly by telling the customer that they want to verify that:
- The invoice was received
- The amount is accurate
- They are happy with the service (i.e., their satisfaction)
Many customers are glad to receive a call to verify their satisfaction, especially if done professionally. This practice also helps root out problems early on.
If an invoice factoring company discovers a problem, it immediately notifies the client to address the problem. Actually, proactively verifying your own invoices, even if you are not using the services of a factoring company, is good for business.
Learn your factor’s processes
Become familiar with your factoring company’s verification procedures to ensure that you are comfortable with them. Clarify any concerns about their procedures before the factor starts verifying invoices.
Get more information
We are a leading factoring company and can provide you with high advances at low rates. For information, get an online quote or call (877) 300 3258.