After all the documentation is received and our accounting team has gone through it and made sure that everything is correct, the payout takes place. That process usually takes 48 hours from the submission of the documents.
No it is not. When you assign your company’s account receivables you have the freedom to select the invoices you wish to assign depending on your cash-flow needs. However, each client whose invoices you have assigned, is formally notified with instructions to remit all the payments to invoitix ag. All the payments for assigned invoices must be received by invoitix ag. This ensures your client sends all payments to one party to avoid confusions. That is why is highly recommendable to submit all the invoices from a given debtor, especially when the debtor is a big company with automated payment procedure.
If invoitix identifies a payment that couldn’t be match with any assigned invoice, informs the client immediately. The client must upload the respective documents on the platform so that invoitix can match the payment with an existing transport. After that is done the payment is immediately re-directed back to the client. Since invoitix has many clients it’s not always possible to identify which client a given payment was made for. Feel free to ask whether invoitix has received a given payment anytime you reckon it to be needed. Nevertheless, in order to avoid such cases, we suggest that you follow the instructions of question 2.
Our commissions are calculated by taking into account 2 main factors: On one hand, the monthly turnover coming from international transports and that the client is willing to submit for funding on the platform of invoitix. There are several range of prices in accordance with that monthly volume. Higher volume is translated into lower commissions. Before sending you a contract our sales team will set up prices for your company pursuant to the pledged monthly volume. The second factor that influences on the prices is the payment term of your invoices. Longer payment term means higher fees. We have 4 pre-established generic payment terms (30, 45, 60 and 90 days) and the prices for each one of them are fixed beforehand considering the first factor mentioned above.
There are not any hidden or membership fees. You will only incur fees on the receivables that you have assigned to invoitix and nothing else.
We always inform the debtors that a given invoice has been assigned to and purchased by invoitix so as to make sure they use our bank account to pay for it when the payment term comes into effect. If you want to inform the debtor additionally of that assignment, feel free to do so. That way the risk of receiving a direct payment decreases significantly.
Nevertheless, in the alleged case that you receive a direct payment you should do the following at your earliest convenience:
• Inform invoitix ag within 48h, otherwise you may incur a penalty of 25€.
• Inform the debtor, with invoitix in cc, that next time the payment must be made to invoitix ag On the other hand, invoitix will balance your account opting for one of the following options:
• The amount of the invoice that has been paid directly will be reduced from your next payout.
• Invoitix will ask you to re-direct the payment you have received directly. invoitix keeps the right to choose any of the above mentioned options at its entire discretion.
If a given Debtor doesn’t accept factoring, we won’t be able to purchase and pay in advance your invoice. Such a cases are rare and we have already identify in our database the companies that don’t accept factoring.
Should it happened that we have accepted an invoice for a new debtor and he informs us that he doesn’t accept factoring along the way, we will inform you immediately. We will give you up to 60 days to inform us when you receive the payment so that we can register it as direct payment and reduce it from your next payout.
You have a total freedom to select the customers you wish to assign. It is recommendable that you focus on your best-paying customers who pay on credit. Assign of receivables or factoring is more of a financial tool to increase cash-flow and not to offload your bad-paying customers. The latter is a job for a debt collection agency.
invoitix purchases around 95% of the total invoices that are submitted on its platform. However, if a given customer/ debtor is not creditworthy or reliable invoitix won’t purchase its invoice. In such a case invoitix will register the invoice as a “serviced invoice” since the debtor doesn’t qualify for assignment (explained in the next question).
When some of the invoices you have submitted for funding doesn’t meet our requirements the invoice is automatically registered as service. That means that invoitix is not going to purchase and pay the invoice in advance but is going to handle the invoicing and collection process. As soon as invoitix receives the payment for serviced invoice, the payment is re-directed to the client.
If the debtor pays the invoice in time, a track record will be created and a possible credit line will have room for future invoices if invoitix considers it appropriate.
invoitix has a huge database in which every customer is credit rated in accordance with their actual financial situation and the payment history they have with invoitix. The database offers a system with 3 colors that show the creditworthiness of every customer in the following way:
Green: Optimal credit worthiness.
Your invoice is going to be purchased and paid in advance. In addition, the credit line for green companies is basically unlimited.
Yellow: Average credit worthiness.
In 90% of the cases your invoice is going to be purchased. The remaining 10% is for customers that temporarily have reached their credit limit with invoitix and some invoices m ust be paid before invoitix could purchase more invoices.
Red: Insolvent companies or bad payers.
invoitix will never purchase invoices for customers labeled in red color. However, you can check a given company before taking a load and avoid losses by not taking the order if the company is red. Feel free to ask invoitix the reason for red creditworthiness for any customer you want.
*There are some companies that are labeled in Red but not because their creditworthiness is not on point but because they don’t accept factoring. Feel free to ask our team if you bump into a suspicious company.
We do it for you. This is part of our service to you as our client. We will check the creditworthiness of your Customers and will give you a credit limit for each one of them. Better yet, we will purchase your receivables up to the credit limit that we establish for them. Likewise, once you add the customer in our database we will label him and monitor him as we do with all the debtors in our system.
Don’t hesitate to ask our accounting team anytime about companies that are not in our database. The only thing we need is the VAT nº and the name of the company and in less than 10 minutes you will have an answer.
You can use your own invoice for internal or accounting purposes if you wish. What you MUSTN’T do is to send you own invoice to the customers. Your invoice must never leave your company. The only invoice that any assigned customer must receive is the invoice generated by invoitix ag.
If some customer requires the original documents our team will let you know and you should send the following documents by post to your customer:
• The invoice that invoitix has generated for the given transport through its platform.
• The original CMR or delivery note (in some cases both are required).
• Pallet notes, temperature tickets and other documents (where applies).
*Sending your own invoice systematically may lead to your permanent ban from the platform, and legal actions against you, for not complying with the main provisions of the contract between you and invoitix.
There must be a very specific reason as to why your customer will not pay for an invoice. In situations of commercial disputes, you as a vendor will have to respond to that dispute. In the event your client becomes bankrupt or insolvent, we usually underwrite your receivables, through our credit insurance. If on the contrary the receivable is not underwritten by our insurance, we cover the loss exceeding EUR 1’200.00 per case.
This is a common misconception for many companies who are new in factoring. Factoring is one of the oldest financing programs and is very common in today’s marketplace and used by many corporations of all sizes as a cash-flow solution. Your customer may already be sending payments to us for invoices from another client.
Banks typically consider your company’s financial condition, the personal credit of the principals and your company’s time in business. Since invoice factoring is the purchase of your accounts receivable and not a loan, we base our funding decisions on the creditworthiness of your customers and not your company’s financial condition.
If your company has account receivables which are paid on credit, is growing rapidly, makes transports for reputable companies, has or has had cash flow problems, it qualifies for factoring.
Not at all. Factoring is a service which is accounted as an operating expense instead of a debt. Entering into a factoring agreement will not hurt your credit history or increase your liabilities on the balance sheet of your company. On the contrary, your financial situation will be improved since your cash flow will be increased and your account receivables decrease.