Small, medium-sized and large companies are increasingly turning to factoring to optimize their financial situation. This helps to prevent non-payment, late payment and even customer reminders, which can undermine business relationships.
On the other hand, it means adding a new procedure to your already tedious and repetitive administrative tasks, and you can quickly become overwhelmed. Fortunately, there are solutions like VSActivity that allow you to automate your factoring process.
The key word, the one that gives you headaches, is “billing”. Let’s put things in context. When you sign a contract with your factor, the latter undertakes to provide you with immediate cash flow in relation to the customer invoices supplied. It’s a bit like selling your invoices, but with a commission. You still need to provide the invoices in question.
All you have to do is identify these invoices and send them to your factor. However, there’s a catch at this stage of the process, which transforms what should be a lever for growth and competitiveness into a low-value-added task. Elements of explanation.
You’re wasting time
In order to easily identify, at least in terms of your resources, the invoices to be sent to the factor, you have created an Excel file with the relevant invoice numbers. There are several possible scenarios:
- You have made one or more input errors and sent one or more incorrect invoices. Your company has therefore received the wrong amount.
- You waste time going through Excel files to identify invoices and check all the information.
You lose money
As the saying goes, “time is money”, so your time wasted on this cumbersome additional task is time you’re not devoting to your core business, and therefore money lost.
You may have automated your administrative tasks with a business ERP. However, the latter cannot interface with the factoring company’s system. To solve this problem, you invest in new software that will convert your ERP file to the correct format. So if you’re following along, you’re wasting time doing this task, and you’re wasting money because you have to invest to complete it.
You lose responsiveness
Given the time you spend on the factoring process, in addition to other administrative tasks, your responsiveness takes a hit. On the one hand, this makes your administrative management considerably more cumbersome, and on the other, you lose sight of your core business.
Yet there are tools like VSActivity that save you time and money every month.
VSActivity is able to create files for your factor, automatically from the information you enter. This means you don’t have to scatter customer information all over the place, and avoid data loss.
The interface available in VSA enables you to generate files for the factoring companies’ electronic platforms, saving you time. These exports are available as standard in the Enterprise version of VSA.
Several media are already available, with more to come.
- FactoFrance Factonet in notified and non-notified mode
- BNP Paribas factor in non-notified mode
For further information, please contact us or your account manager for VSA customers.
