e-Invoicing and Invoice Factoring

Introduction to Invoice Factoring

Invoice factoring is an alternative efficient financing method where businesses sell their unpaid invoices to a third-party factoring company/ provider in exchange for immediate cash.

Other benefits of the FIRS E-Invoicing System

Invoice factoring is one benefit of the FIRS E-Invoicing System. Consider other benefits captured on the FIRS and FIRS E-Invoicing system page.

How Invoice Factoring Works with e-Invoicing

Through the FIRS E-Invoicing system, there is:

• Instant Validation:
  Factoring providers can verify invoice authenticity and check for FIRS digital stamps in real-time.
• Secure Records:
  E-invoices are stored in a secure database, reducing risks of fraud or error.
• Accelerated Cash Flow:
  Faster approvals for factoring requests, improving business liquidity.

Benefits for Businesses

• Reliable cash flow from verified invoices.
• Simplified compliance for factoring processes.
• Government support for economic growth by promoting business liquidity.