Briox offers an integration with the factoring company – KTI Laskutus Oy. With this integration you can get your customer invoices financed directly from Briox. With this feature you can accelerate the financial flows of your company and allow your business to grow faster.
The integration and financing process
The integration with KTI and the financing process is very easy to use and does not require any effort from your side. Just create a customer invoice and click “Finance”. A modal with a calculator appears. Here you can check the price for factoring the invoice based on the invoice amount, the period, and the financing percentage. You can see more information by hovering on the tool tips.
There are two fees for the factoring service. The first is based on the invoice amount, the payment terms and what percentage of the invoice you choose to finance. The second fee is always fixed, and costs 3€ (plus VAT). This fee includes invoicing services which include sending reminders and, if necessary, debt collection. You will see both fees calculated here.
In the same modal you can choose how to send the invoice to your customer. Please note, that invoice will be sent with KTI's payment details as the customer must pay the whole amount to KTI's bank account. You do not need to make any changes, Briox will add KTI's payment details automatically to your invoice. Please also take into account that the sales invoice to be financed is processed without VAT, because according to the VAT Act, the financial sector is not liable for VAT.
Please note that the invoice template used for factoring is different from the one you are using. You can see the example below:
Activating the integration
You do not need to do anything special to activate the integration with our factoring partner. After selecting the financing details in the calculator, click Finance, the Terms and Conditions page will pop-up. Please read Terms and Conditions carefully. If you agree click Accept and the integration will be activated. This step is required once only and when you finance the next invoice the Terms and Conditions page will not appear.
Statuses of the financed invoice
Then the financing process is started, the invoice status will be Available. This means that the invoice has not yet been processed by KTI. Note that until the status changes you can revert financing. KTI processes the invoices once a day around 2 PM, so you can have in mind that if you finance invoices in the morning you could get payment the same day already!
When invoices have been sent to KTI, the invoice status will be changed to Pending. This means you should wait for KTI's decision. When a decision has been made, you can see two statuses: Factoring approved or Factoring not approved.
If factoring has been approved, then you will receive the payment according to the details you have chosen in the calculator. Both factoring fees will be deducted from the first payment. If you decide to finance only part of the invoice, you will receive the second payment after your customer has paid KTI.
If factoring has not been approved, it means KTI has decided not to finance the invoice because the risk is too high. In this case, the invoicing service will still be carried out by KTI and your customer should still pay to KTI‘s bank account. When your customer has paid KTI, the payment will be made to your bank account, excluding the 3€ (plus VAT) fixed fee.
You can check the status of your financed invoice in you invoice list. At the end of the row you will see different status icons:
If your customer does not pay on time and KTI sends reminders, the status of the invoice will be set to Reminder and if the process goes further to debt collection the status will be set to Collection.
If you are feeling confident about factoring service and want to finance several invoices at once, you can do so in the customer invoices list view. Just tick the checkboxes for the invoices you want to be financed and click the button “Finance” at the bottom of page:
In the next step you need to decide the details of financing for all the invoices. You will see the invoice statuses in the same place, but keep in mind that some of these invoices can be accepted and some declined for factoring.
KTI will send a payment to your bank account and you will see this payment in the account statement. In the Process transactions view of banking, you should reconcile the payment from the bank statement with a journal in the A-Accounting series. This journal will appear in the reconciliation page automatically. Please note that you shouldn’t do any changes in the accounting, the journal will be posted automatically.
Here you can find an example of the journal KTI sends through the API. As has been mentioned before, no additional actions are required from your side.