Accounts receivable financing, also known as invoice financing or factoring, is a financial tool that businesses use to get cash for their outstanding invoices. It allows businesses to receive payment for their invoices upfront, rather than waiting for their customers to pay.
Here's how it works: a business sells its outstanding invoices to a financing company at a discount. The financing company pays the business a portion of the value of the invoices upfront, and the business receives the remaining balance, minus a fee, when the customer pays the invoice. The financing company then takes on the role of collecting payment from the customer.
Accounts receivable financing can be a useful tool for businesses that need cash to cover expenses or fund growth, but it is not suitable for every business. It is generally more expensive than traditional forms of financing, such as a bank loan, and it may be more difficult to qualify for if a business has a poor credit history or unstable cash flow.
Overall, accounts receivable financing allows businesses to get cash for their outstanding invoices by selling them to a financing company at a discount. It can be a useful tool for businesses that need cash, but it is not suitable for every business and can be more expensive than traditional forms of financing.
Qube Account Receivables Finance Added Value
PRI® inside Platform
The fully automated solution for account receivables (or AR) financing by PRI® inside offers:
- Daily (re)purchase of invoices
- Daily portfolio analysis and portfolio review
- Daily notification of purchased receivables
- Daily settlement of credit-notes and uncollectable invoices
- Daily liquidity calculations
- Full ‘track and trace’ solution, all required steps are logged and documented
- Fully automated data-exchange after one-off implementation of data-exchange protocol
- Daily funding and settlement towards participating companies & institutions
- Fully integrated risk, operational and legal framework
Set-up for daily settle-ment routine is defined on automated interface between client’s financial and operational systems and Qube’s PRI® inside. Interface will be implemented and supported by Qube Servicing.
After go-live Qube’s clients will have access to all daily settlement reports with automated instructions for payments if required, resulting in a very limited work-load for clients on an ongoing basis.
PRI® inside has been developed based on the in-depth experience with receivables finance with the objective to have a fully front-to-backend automated receivables finance platform based on historic and actual data which to provide full insight & transparency which will be evidenced by demo on request.
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