Freight Factoring: The Benefit of Verifying Invoices
Some factoring companies will verify every invoice issued. This can create a disruption for customers’ accounting departments and can affect the client’s relationship with them. An experienced freight factoring company has the capability and systems in place to avoid this potential difficulty. Utilizing industry knowledge and fortified with reliable credit information, a qualified factoring company will implement a sampling approach to verify invoices. This tactic reduces the risk mitigating process to a comfortable level that customers will appreciate.
An experienced factoring company will form a mutually beneficial working relationship with a client's customers.
The verification process is tailored to seamlessly integrate with the existing systems and work practices as established by customers’ accounts payable department. This approach creates an environment of enhanced credit protection with minimal disruption to the customer.
Figure 3-2: The Verification Process
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