The Verification Process

In our industry, we advance capital based on accounts receivable. As part of the process, it is important that we verify with your customers before we fund. This can be a confusing step for someone who is new to factoring. The biggest misnomer is that adding someone into the invoice and collections process with hurt the process. We have found that the opposite is true. Customers value and appreciate accurate and timely billing and clear collection details. Added organization around your Accounts Receivable process usually leads to good results for all involved. We asked Alison Breiner, Factoring Lead, about the importance of this step in the process.

Alison was able to spell it out fairly simply…

“A verification allows Breakout to be sure our collateral (the AR) is legitimate, accurate, and will be paid by a client's debtor. It gives us comfort that the capital we are extending to our clients will be paid back. Not only do verifications benefit Breakout, they also help our clients as well. Many times we or the debtors will catch an error on the invoice and it can be changed immediately. Fixing discrepancies quickly allows for accurate bookkeeping for you and your customer. In most cases it means debtors will pay more quickly, with less back and forth communication. If we do run into a collection issue, verifications can help us (and our client) collect on past due funds. It provides us with valuable communication to eliminates the debtors ability to refuse payment in many cases.

We can verify invoices in many ways and pride ourselves on flexible and creative solutions that work for our client and their debtors. We strive to add to the relationships you have built with your customers, not take away from them.

Our favorite, most secure, and quickest way to verify is our online system. Our client submits their invoices as usual to their debtors. Then, they use their Breakout Client Portal to submit the same invoices to us as well. We get alerted a new invoice has been submitted. Within minutes, we can send a verification email to the debtor through our online system. The debtor can quickly accept or reject the invoice via our email. The whole process is automated to be quick and easy for everyone involved.

Once invoices are verified, funds are out the door to our clients. This added speed in the cash flow cycle is what helps our customers grow and expand. If you have additional questions about how our process works or how it may benefit your business, please use our calendar function on the website to set up a call.”

- Alison Briener, Sr. Account Managing, Factoring at Breakout