Invoice Batching
This is most commonly done where there are a series of invoices for small amounts. The invoices would be batched and treated as a single invoice. Once enough invoices from that batch are collected to cover the advance and the factoring fees, the batch is deemed “closed”. Thereafter every invoice of that batch which is collected from the debtor, is paid over in full to the client.
The effect is that the client is charged a lower discount fee, normally reserved for larger invoices, instead of being charged a higher discount fee normally charged on small invoices.
© 2007 Sanjeev Aaron Williams & Cashwerks All Rights Reserved
This is most commonly done where there are a series of invoices for small amounts. The invoices would be batched and treated as a single invoice. Once enough invoices from that batch are collected to cover the advance and the factoring fees, the batch is deemed “closed”. Thereafter every invoice of that batch which is collected from the debtor, is paid over in full to the client.
The effect is that the client is charged a lower discount fee, normally reserved for larger invoices, instead of being charged a higher discount fee normally charged on small invoices.
© 2007 Sanjeev Aaron Williams & Cashwerks All Rights Reserved
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