It’s mind boggling to discover just how much difficulty business owners have in grasping the concept of a “final sale” in the context of factoring.
Start with this: For an invoice to be factored there MUST be a final sale B2B.
In other words, there has to be a completed product or service that has been delivered to and accepted by the customer – and on which, payment is now due.
- Forget about factoring partial deliveries where payment is not due until final delivery.
- Forget about factoring invoices on returned items.
- Forget about factoring invoices for sale by consignment i.e. the debtor does not have to pay until it has re-sold the product.
The Reader is also referred to previous posts under the label, “Commercial Invoice”.
© 2007 Sanjeev Aaron Williams & Cashwerks All Rights Reserved
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