It’s no surprise to anyone that many businesses are incorporating digital solutions to reduce costs and spending. Since almost everything is going digital nowadays, businesses are looking towards more technology-oriented initiatives.
One of these digital solutions is the implementation of paperless invoice financing. Automation in financing has left a big impact on reducing cost and disbursement for the better. Through automation alone, businesses can save up to thousands of Singapore dollars. Just by investing in automated invoice financing alone, businesses are making the right choice if reducing costs is a priority.
Before knowing what makes paperless invoice financing a marvel for industries all around the globe, what happened to paper-based financing? What prompted businesses to invest in paperless invoice financing instead?
The problem with paper-based invoice financing
Before the digital world has taken over, the traditional method of financing was the way to go. However, with everything digitally enhanced, paper-based financing is starting to become a thing of the past. With invoice financing as the highly recommended way to go, we can ponder upon what made paper-based financing.
A noticeable problem in paper financing is the high number of supply costs. The supplies, which include papers, printers, and other office-related items, can be expensive. Eventually, businesses will significantly increase their expenses as long as supply costs are involved.
Paper financing also obliges businesses to spend too much effort on manual processes. This makes it difficult for businesses to focus on one aspect of financing, prompting more human operators to multi-task on different occasions.
One thing you should also keep note of is that paper-based financing has limited or poor cash flow visibility. It’s a detriment to business because cash flow analysis is a top priority for executives. With poor cash flow visibility as an obstacle, it’s difficult to provide insight regarding a business’s financial status.
Risk of fraud is also possible if you’ll invest in paper financing. Safeguarding sensitive data should be a top priority to mitigate or prevent fraud.
Paper-based financing is past its prime and automation has swooped in to make things better. In general, invoice financing gives a better overview of a business’s financial status.
Invoice financing provides businesses with streamlined activities that can process documents and files in a single optimised platform. There’s no more need for routing, handling, and storing paper files and documents. This allows a smoother workflow for both the buyers and suppliers involved.
Automation also eliminates common errors that prominent in paper financing. There’s no need to worry on key errors regarding verification and keying of data. It’s proven that businesses with a high level of automation report have encountered fewer errors compared to those with a low level of automation report.
If you want your business to strive on the better side of financing, contact Nufin Data. Our invoice financing method is more streamlined compared to the traditional method. Improve your cash flow in a quick manner with Nufin Data’s customised solutions.