You are waiting for your invoice to be paid You can sell it!
Invoice financing is an extremely simple and clear mechanism. You – as an entrepreneur – you submit to the factoring company an invoice for which you wait for the repayment, and the factor pays you immediately, less the amount of the commission. This is how in skr how invoice financing works at PragmaGO.
Invoice financing terms
No serious entrepreneur would decide to buy a cat in a bag (or use a service that they You are waiting for an invoice to be paid You can sell it in an agreement (you don’t know anything), so it is worth learning more about how to take advantage of invoice financing.
Invoice financing can be used by any company that ry issue their contractors with invoices with a distant payment deadline. Invoices must be presented for financing on the condition that they are not due and payable. This means that the due date of an invoice for which If you want to receive money from a factor, it cannot be in less than seven days’ time. This is the most important condition of invoice financing (apart from the fact that you have to run an active business).
What’s more, invoice financing does not require you to be in business for a certain period – even if you decided to set up your own business a month ago, there is nothing to prevent you from starting your own business head to sell an invoice for which As an entrepreneur, you have to wait for the repayment.
An important element in the purchase of an invoice is the fact that it is not due The main advantage of factoring (and therefore also invoice financing) is that your company’s debt does not affect the availability of the service. After the factor pays the money to your company, Tw The would-be debtor will be obliged to pay the factoring company the amount that You have to pay the amount you were supposed to pay to your company before.
Invoice financing costs
Costs of the financing service can be easily calculated thanks to the calculator available on PragmaGO website. Simply enter the amount on the invoice and indicate how many days the contractor has left to pay. The more, the higher the cost of the service, because in practice it means that the factor will probably have to wait longer to get his funds back .
Example: Mr Patryk issued an invoice to a client for 20 000 PLN. There are still 45 days left until the due date. According to the calculator, Mr. Patryk will receive PLN 19,090 in his business account even within two ch hours! The total cost of the service is 910 PLN, but in return the money will reach Mr. Patryk’s company account 45 days earlier!