What do you need to know about your client to ensure a smooth factoring relationship?

Factoring can be the ideal solution for your business when you need quick and hassle-free access to your money. Whether you want to invest in new equipment, pay employee salaries, or settle your company's debts, factoring can ensure your company's cash flow in record time, without red tape and entirely online. What do you need to know about your client when you want to upload an invoice issued to them to the platform? There are a few things you need to keep in mind to ensure that the factoring process goes smoothly.

1. Your client must agree to factoring

For your invoice to be approved and the funds to be deposited into your account within 24 hours, the client to whom you issued the invoice (the debtor) must agree to this. Nothing changes for them, only the account to which they'll make the payment for the services you've provided.

The process is simple: we accept your invoice, you receive the money from us as soon as possible, and on the due date, your client will pay the invoice into the Instant Factoring account.

2. The debtor must confirm the invoice

Your client must confirm the invoice you've issued and agree to change the account to which they'll transfer the amount due on the due date. Nothing changes for them, and your relationship is not affected in any way by the factoring process.

3. The debtor's company must not be in insolvency

For the invoice you issued to your client to be accepted, their company must not be in insolvency. Make sure of this before uploading the invoice to your account.

4. You cannot upload invoices from companies within your group

If you are a shareholder in another company or own a group of companies, you cannot upload an invoice issued to them to the platform. In this case, the invoice will not be accepted, and the factoring process will be interrupted. We're confident you can find other clients with whom you can successfully try factoring!

5. Your client's company must have been in business for more than one year

The invoice you upload to your account on instantfactoring.com must be issued to a company that has been in business for more than one year. This way, you can be sure your invoice will be accepted, and you can move forward with your plans.

6. The debtor's company must not be experiencing major financial difficulties

As you probably expected, it's essential that your client's company not be experiencing major financial difficulties. This way, we can ensure that the factoring process works as it should, for both you and us. Win-win 🙂

7. The debtor must not have any payment incidents

Before we accept your invoice for payment, we need to make sure your debtor has no payment incidents (CIP).

8. The debtor must not have significant debts to the government

Just as with the points above, we need to ensure that the debtor will pay the invoice by the due date. This is important for both us and you. Choose clients you can rely on and with whom you can establish a long-term factoring relationship.

If you keep the points in this article in mind, there's a very good chance your invoice will be accepted and you'll have the money in your account within 24 hours. Easy for you, easy for us, and easy for your debtor.

Try factoring with your reliable clients, and you'll discover an alternative source of financing that can take your business to the next level.

If you need additional information, don't hesitate to contact us. We have a specialized team that can help you with customized financing solutions tailored to your business's needs.