FAQ

The following is a list of frequently asked questions about IPS Invoice Payment System. To find an answer to an FAQ, please select from the categories on the left.

Invoice Financing Overview

Why do companies decide to finance their invoices?

Most customers demand invoice terms of 30 or 60 days, but suppliers need liquidity to meet the immediate financial demands of their businesses: payroll, insurance, rent, and other expenses. Other reasons include:

• Rapid growth
• Seasonality of business
• Large customer concentration
• Slow turnover of receivables
• Bad debt losses

What are the benefits of invoice financing?

Regardless of whether you are a startup or a well-established organization, you benefit by:

• Increasing your liquidity and significantly improving your cash flow
• Reducing administrative costs associated with receivables management
• Minimizing bad debt losses through a detailed due-diligence process which thoroughly analyzes the invoices and reviews the creditworthiness of your customers
• Improving management of information through IPS reports and analytics

Which industries are using invoice financing the most?

Companies all along the supply chain, regardless of whether they are in manufacturing, transportation, technology, staffing, sales or distribution.

Is invoice receivable financing a new funding alternative?

No. Invoice receivable financing has been around for centuries. Until the mid-1980s, it was mostly used by textile and garment industries, but today it is widely used by companies who offer products or services on credit, across many industries.