Banks, credit unions, and alternative lenders that provide invoice finance expect an increase in demand for the service after the Covid-19 lockdowns have lifted. Having collected a long list of unpaid invoices, businesses will seek lenders to help finance their needs.
Invoice factoring is an easy and fast way to recover cash flow after reopening the business. Sending invoices to a factoring company, borrowers receive funds that do not appear on the balance sheet as a loan. Factoring provides access to the cash earned from sales immediately. It smooths out the cash flow and is straightforward to manage in general.
To handle an endless supply coming after the lockdown, invoice factoring companies need to update their processes by moving digital. Top-notch lending software solutions allow streamlining every business process from onboarding to debt collection without the necessity to collect information from various tools. Clients get one-for-all software for lending and invoice factoring.
The market offers various options to choose from including box software, from scratch and configured. And while the two first variants are widespread among consumers, they might have lacked an understanding of configured software which remains the best software type for lenders. Configured is usually a set of prebuilt components that a developer adapts to your business needs. So, a team just creates software around their core code adding and improving functionality required by a user. It delivers several benefits for clients, such as a significant reduction in time to market by 3-4 months and a reduction in price, if compared to custom-made solutions.
Modern developers provide unlimited functionality to clients. Automating every manual task, including charging fees, calculating payments, sending notifications to customers, managing and updating payment schedules, and others, factoring companies save time and allocate it more effectively since they no longer need to do it all manually. Factoring software makes it simple to get away from daily routine activities and pay attention to other time-consuming tasks.
With document management, statistics, and reporting you will forget about tons of printed documents. Modern solutions can collect all the data, analyze it and drive relevant statistics, accompanied by diagrams and graphics for detailed reporting. The platform can collect all your documents and let you have fast access to everything. Moreover, by upgrading the software with a dedicated notification module, you will inform your customers about their payment delays, new services, profitable deals, etc. As well as notify your employees about deadlines, account terminations, security bugs, and other things you need.
To streamline onboarding and communication with users, add a multichannel lending module. It allows connecting your website, online chatbot, in-person communications, and call phones to provide an excellent customer experience. With omnichannel optimization, your customers will be able to start cooperation on any convenient channel and finish it on another one, if needed. This will help you to show your customers that you care as well as reach out to more users, especially millennials.
These are only the minimum of things to improve your invoice factoring. Developers can add the following:
- Feature-rich account management module to let borrowers track their loan activity.
- CRM module to manage and track each paid invoice and contacts with customers.
- Payment software integration to sent and receive money via secured channels.
- Security module to protect the platform and customers from fraud and data theft.
- BPMN to reduce time-consuming processes and update workflow.
- Data validation module to check every data entered by a customer, etc.
Working with a tech-savvy development team, your invoice factoring company will provide customers with quick and convenient access to all their funding needs. Have all your business processes under control with online software for effective factoring.
|About the author
A Co-Founder and a CRO of HES Fintech and CEO at GiniMachine – an AI-driven platform that solves traditional credit scoring challenges with machine learning algorithms. In 2018, he was ranked as one of the top 200 Fintech leaders in Europe who contribute to the industry as influencers through action.
In 2019, Dmitry was ranked as one of the most influential AI leaders in Eastern Europe.
Since 2020 Dmitry Dolgorukov is a member of the Forbes Finance Council.