As fleets use factoring companies more and more, the need to transmit accurate information is increasing. To solve this problem, Innovative Computing Corp. applied for and received a patent for a “method and system for auditing trucking invoices.”
The patent for the as-yet-unnamed software gives Innovative a proprietary product that will gather actual and accurate data, such as exact mileage, fuel consumption and negotiated rates, from a carrier's Innovative Enterprise Software (IES) system and use that information to validate invoices before they are sent out to a factoring company.
Factoring is when a carrier sells its accounts receivable for a discount to a third-party company, which then attempts to collect the amount owed. The advantage to a carrier is access to immediate cash, albeit at a reduced rate, rather than waiting for a customer to pay.