Online Financing of Invoices: in Italy is not easy going

Paola Fasoli Financial risk management guide 5 Comments

Looking at web sides of UK factoring companies, you got the impression that everything is managed via web and no paper is required: you upload the invoices you want to get anticipated and, without big formalities you get the cash ….
In Italy, on the contrary, in most cases if you wish to factor an invoice, you have to send by mail original copy of receivables purchase offer duly signed. “Data certa” on receipt of the letter is a condition sine qua non to get correct value date of incoming cash from the factor.
Question is, whether in Italy original signature to be put in all receivables purchase offers are requirements of law or a requirement of banks which, in turn, need them to comply central authority rules.

 

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The fact is that, although many progress have been made thanks to PEC (certified mail) and efforts of factoring companies, in Italy a flexible and less time consuming managing of factoring is still to be seen.

 

 

 

In UK, online platform for invoice financing are a reality. We count three well established on-line platforms.
On-line platform for factoring can support not only medium sized companies, but also individual entities.

 

 

 

 

 

 

 

Let’s think about a worker, which is not getting his salary paid in time (60 days of delay or more). If you give him an online- tool to fund its salary-invoice, you give him an easy and quick solution to raise his duly cash.
What seems to be missing in Italy, is the mission to raise the profile of the online segment of invoice finance market.
We got the impression that in Italy, factoring companies concentrate their efforts to big firms, which have offices dedicated to factoring only and can manage big quantity of documents. Small and individual enterprises seemed to be left by their own.
What can be done to improve in Italy invoice finance market?
Less paper!
Online tools where plafonds and outstanding for each debtor can be easily read; simple fees that pay investors who fund sold invoice, eliminating any additional one-shot cost.
It is not a big work, basis are already there; we only have to add the will to enlarge Invoice finance market to individual entities. The rest follows…..

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About the Author

Paola Fasoli

Paola is the Treasury Manager for a major manufacturer of industrial vehicles. She has many years of experience in debt, cash and funding management. Previously she was European Treasurer and Responsible for the Asset Backed Department. She began her career in the investment banking industry where she was a Credit Analyst. Paola holds a degree in Business Administration from Turin University and she is a Chartered Accountant and Auditor. paola.fasoli@hotmail.com

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Comments 5

  1. I think that it is not only in italy that the small business are having a hard time to cope up with the other business. Thanks for sharing this article. I hope that issue like this will grab the attention of the government.

  2. Thanks for sharing this article. I think that a lot of business owner get a hard time for getting funds for their business. I think that it will be great if there will be a program that can help small business to rise up and get working capital for their business.

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