How does Invoice Payment Commitment work?
Easy and cost-effectively eSigned Invoice along with Bill of Exchange accepted online by the Buyer 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:
Legally establishes the liability and fixes the date on which Payment is to be made by the Buyer to the Seller, mitigating payment risk.
An efficient Mode of Credit / Funding from banks and other financial institutions.
Bill of Exchange are an established negotiable instrument and transferable by endorsement.
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.
Why do we need an Invoice Payment Commitment?
We all can agree that it's almost impossible for unsecured operational creditors to
legally challenge their debtors without
proper legal documentation. Online signing and execution of IOUX Invoice Payment Commitment containing
documents consisting of accepted Invoice and Bill of Exchange offer great speed, ease and cost
accomplish this objective.
The IOUX Invoice Payment Commitment is required in order to ensure a certain amount of payment as soon as possible or within a fixed time frame from the Buyer to the Seller.
Chances of payment defaults from buyers are largely mitigated with these documentary confirmation of payment obligations.
Further, these instruments can also be used to finance trade and achieve credit.