How to get bank financing through electronic invoicing?

Micro, small and medium-sized enterprises (MSMEs) use the electronic billing to generate liquidity through factoring. However, according to Efact, there is another more useful alternative as financing: bank loans.

Efact CEO Kenneth Bengtsson explained that the electronic billing It is a tool that banks can take as a reference to evaluate the payment capacity of MSMEs.

“This system opens an important door for companies to obtain direct financing, and not only through factoring, but with different working capital products,” explained Bengtsson.

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Factoring vs. Credit

Factoring has the advantage that companies can sell their negotiable invoices for liquidity. However, they warned a limitation is that the financial entity that buys the invoice does not evaluate credit history of the company that sells the accounting document, but of the debtor.

It is for this reason that almost 100% of the electronic invoices that access factoring have as acquirers the big enterprises (which have an undoubted ability to pay) and, for this reason, these vouchers represent less than 2% of all those that could be negotiated.

In the case of bank credit the opposite happens. The entity assesses only the payment capacity of the Mipyme. According to Efact, the electronic invoicing system shows accurate information on the company’s finances and thus it can access better financing opportunities for working capital.

“As an accurate record of their business activity, organizations can use electronic invoicing as a tool to demonstrate to lenders who your customers are and if they are loyal, how much are its sales, its main products, market trends and all kinds of data that help to show that a company is a good payer ”, Bengtsson emphasized.

It is worth mentioning that Efact and Interbank have an alliance to carry out evaluations to SMEs for the granting of a loan based on the sales they register.