What is Invoice Payment Commitment?
The IOUX Invoice Payment Commitment is a special instrument that supports any invoice where credit is extended by the seller to the buyer with strong evidence of payment obligation from the buyer to the seller by way of digitally accepted invoice along with a bill of exchange.
The Invoice Payment Commitment works by enabling easy and cost-effective electronic signing of the invoice and bill of exchange, which obliges the buyer to pay the due amount for the goods or services that have been received within a particular period or on a particular date. It also empowers the seller to avail financing based on the acknowledged invoices and accepted bill of exchange.
The Benefits of Invoice Payment Commitment for both parties:
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1
Legally establishes the liability and fixes the date on which Payment is to be made by the Buyer to the Seller, mitigating payment risk.
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2
An efficient Mode of Credit / Funding from banks and other financial institutions.
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3
Bill of Exchange are an established negotiable instrument and transferable by endorsement.
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4
Automated gentle reminders sent by IOUX to buyer further enhance certainty on the due date of payment.
So, we can definitely say that both parties can start to benefit when they execute an Invoice Payment Commitment since it mutually accommodates both the Buyer and the Seller.
- The IOUX Invoice Payment Commitment helps ascertain an amount of payment as soon as possible or within a fixed timeframe from the buyer to the seller.
- Documentary confirmation of payment obligations in the form of the Invoice Payment Commitment largely mitigates the chances of payment defaults from buyers.
- The IOUX Invoice Payment Commitment Documentation is useful to obtain trade-finance and achieve credit, making it a valuable tool for businesses.
