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Mipymes: how to use electronic invoicing to access financing alternatives?

The correct use of new technologies can allow MSMEs to access easy and fast financing alternatives, such as factoring, invoice discounting and even bank loans, according to Kenneth Bengtsson, executive president of Efact. But, what do these credit products consist of? Bengtsson explains it.

factoring

It is a negotiation where a company sells an invoice to a bank or financial entity that advances the payment and directly takes charge of the collection. “It is easily accessible, even without prior experience, through different digital channels, such as the Efact platform, which offers contact possibilities with several companies dedicated to this type of financing,” explains the Efact specialist.

Likewise, it specifies that for this credit product the credit risk of the person selling the invoice is not always taken into account, because the financial entities analyze the profile of the company that will pay the voucher. “Thus, factoring companies prioritize electronic invoices that have large companies as purchasers, which have an undoubted ability to pay”, he comments.

invoice discount

It is a type of credit in which a company receives the money, but delivers the voucher as a guarantee, maintaining its payment responsibility with the bank. The financial entity will only collect the invoice from the acquirer in case the applicant fails to comply with his payment responsibility.

“Since it is a loan with a guarantee involved, the risk assessment is carried out on the company requesting the invoice discount. It is not a very common product and the banks give it to companies with a solid line of credit”, indicates Bengtsson.

Loans and other credit products

According to Bengtsson, Mipymes are unaware that they can use electronic invoicing to demonstrate their ability to pay before a bank and access a working capital loan.

“Under this modality, a company uses its electronic invoicing system in its favor in the analysis of credit risk. Authorize the financial entity to review your sales rate, if you have recurring orders and loyal customers, demonstrating that you have the ability to pay, ”he mentions.

Source: Larepublica

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