| Accounts Receivable factoring is a process that | | | | the document is verified. This serves as a proof |
| enables a small business to sell off its invoices and | | | | that the goods were received and accepted. The |
| other Account Receivables to a financing | | | | next step involves the creation of the invoice |
| company. The financing company purchases these | | | | statement. Once this is done, the company |
| invoices at a discounted rate, gives the cash to | | | | initiates the process of collecting the money as |
| the business and, when the due date of the | | | | the due date arrives. All Outsourcing companies |
| invoice arrives, it collects the cash from the | | | | focus on maintaining a cordial relationship with the |
| customer at the face value of the invoice. The | | | | customers, and collecting the money as soon as |
| company can collect the cash itself or outsource | | | | possible. |
| the work to another company that specializes in | | | | In fact, some companies also design customized |
| cash collection services. | | | | solutions to implement both inbound and outbound |
| The Outsourcing company first carries out what | | | | treatment plans to manage the Accounts |
| can be termed as an image capture. This means | | | | Receivable based on the customer relationship |
| that as soon as a purchase order is received, the | | | | strategy of the company. |
| company uses a large number of recording | | | | The company then contacts the customer |
| techniques to scan the purchase order, and then | | | | through formal letters or phone calls, and also |
| index it based on fields such as customer name, | | | | maintains a record of the same. If, after |
| customer number, invoice number and date. This | | | | adequate reminders, the payments do not |
| will ensure that all | | | | materialize, the company also prepares statistical |
| customersï¿bf½ data is stored | | | | reports stating the causes of delinquencies. It also |
| together digitally and is accessible when required. | | | | tracks issues like non-payment due to damaged |
| The next is to scan the POD, or proof of | | | | merchandise, unfulfilled service and pricing |
| delivery. Here, the | | | | discrepancies. |
| customerï¿bf½s signature on | | | | |