Backup Documents

 

We need copies of all documents supporting your right to invoice your customers in our database . Their form is largely dependent on your industry and/or business model, and, normally, you would just file them away and never look at them again. But we’d like you to think them as a necessary tool in the following doomsday scenario. Imagine that you had not searched the internet for online or web-based invoice factoring and were not factoring your invoices with us, but a customer or customers unreasonably refused to pay your invoices. In such an event, you would have two (2) choices:

  • Write the accounts receivable off as an uncollectible bad debt
  • Sue the customer(s) to collect what it owes

If you sold goods to your customer and chose the latter approach you would have to assemble the documents that you must enter into evidence in order to meet your burden of proof, such as a copy of the purchase order or contract which will establish receipt of the order, or any of the following documents:

  • Signed Bills of Lading and/or Proof of Delivery
  • Web-based proof of delivery you can download from internet portals, such as:
    • FEDEX
    • UPS
    • DHL
    • USPS

Caveat:

The invoices you factor must represent true accounts receivable, which are assets on your balance sheet and liabilities, known as accounts payable, on your customers’ balance sheets. Therefore, invoices to distributors and any retailers or e-tailers, such as QVC, HSN, Amazon, Office Depot, Office Max, Home Depot, COSTCO, etc. which offer their customers an unconditional right to return the goods are not accounts receivable because the customers' duty to pay the invoices is contingent on the sale becoming a final sale without the right of return.

 

However, the foregoing rule does not apply to the sale of services which cannot be returned, per se, after they have been performed. Therefore, backup documents which will substantiate performance of the services could include signed timesheets, service reports, work orders and emails.

 

After you finish each invoice creation session, you will be prompted to enter the invoice number and a description of each document, and upload the pertinent backup document(s) to our cloud-based database in any format, without any cost, such as:

  • PDFs
  • Spreadsheets
  • Word processing documents
  • Any other documentary proof

Backup Documents

 

We need copies of all documents in our database supporting your right to invoice your customers. Their form is largely dependent on your industry and/or business model, and, normally, you would just file them away and never look at them again. But we’d like you to think them as a necessary tool in the following doomsday scenario. Imagine that you had not searched the internet for online or web-based invoice factoring and were not factoring your invoices with us, but a customer or customers unreasonably refused to pay your invoices. In such an event, you would have two (2) choices:

  • Write the accounts receivable off as an uncollectible bad debt
  • Sue the customer(s) to collect what it owes

If you sold goods to your customer and chose the latter approach you would have to assemble the documents that you must enter into evidence in order to meet your burden of proof, such as a copy of the purchase order or contract which will establish receipt of the order, or any of the following documents:

  • Signed Bills of Lading and/or Proof of Delivery;
  • Web-based proof of delivery you can download from internet portals, such as:
    • FEDEX
    • UPS
    • DHL
    • USPS

Caveat:

The invoices you factor must represent true accounts receivable, which are assets on your balance sheet and liabilities, known as accounts payable, on your customers’ balance sheets. Therefore, invoices to distributors and any retailers or e-tailers, such as QVC, HSN, Amazon, Office Depot, Office Max, Home Depot, COSTCO, etc. which offer their customers an unconditional right to return the goods are not accounts receivable because the customers' duty to pay the invoices is contingent on the sale becoming a final sale without the right of return.

 

However, the foregoing rule does not apply to the sale of services which cannot be returned, per se, after they have been performed. Therefore, backup documents which will substantiate performance of the services could include signed timesheets, service reports, work orders and emails.

 

After you finish each invoice creation session, you will be prompted to enter the invoice number and a description of each document, and upload the pertinent backup document(s) to our cloud-based database in any format, without any cost, such as:

  • PDFs
  • Spreadsheets
  • Word processing documents
  • Any documentary proof