Invoice Verification

Invoice verification is the process by which an invoice finance provider checks that invoices submitted by a client are genuine, that the underlying goods or services have been delivered, and that no dispute or credit note exists against the invoice. The extent of verification varies significantly between providers and facilities.

At the more stringent end, a provider may contact each debtor directly to confirm receipt and acceptance of the invoice. For larger, more established businesses on a confidential discounting facility, verification is typically done on an audit basis, reviewing samples of invoices periodically rather than checking every one individually.

Fraudulent invoicing, where a business submits invoices for goods or services that do not exist, is one of the most serious risks in invoice finance. As a result, most providers have internal verification procedures and will investigate any irregular patterns in invoice submission behaviour.

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