Invoice finance companies place huge importance on a businesses audit trail. The audit trail ensures that the debts are secure and provable.
If you are looking for an invoice finance facility it is important to look at your business and how robust the audit trail is.
Each business will have it’s own quirks and characteristics. As such you will have to focus on finding ways to implement a suitable audit trail.
By way of examples let’s have a look at some traditional robust audit trails that invoice factoring companies expect to see in place.
Wholesalers
- Purchase order
- Proof of delivery (signed by recipient)
- Invoice
Temporary Recruitment
- Agreed rates
- Purchase order
- Signed timesheet
- Invoice
Design Agency
- Brief supplied by customer
- Quote
- Acceptance
- Work is submitted
- Signed satisfaction note (this eliminates queries down the line)
- Invoice raised
The better your invoice audit trail the better. Importantly you need some kind of 3rd party sign off by way of a signed proof of delivery, signed timesheet, signed satisfaction note.
This may seem like additional administration but it is key to sourcing a facility and it is a good step for your own internal procedures.
