Author:
Emi Santos.
If you want me to sing for you, the cash up front
In Spanish proverbs, we find expressions that reflect popular wisdom regarding transactions and agreements. One of them is: “Si quieres que te cante, la cash por delante”. This saying, which has variants such as “Si quieres que el ciego cante, la limosna por delante”, emphasizes the importance of receiving payment before providing a service or delivering a product.
In the current business context, especially with electronic invoicing becoming mandatory as of July 2025 in Spain, this approach becomes even more relevant. The digitization of invoicing processes is not only a legal requirement, but also an opportunity to optimize financial management and ensure liquidity.
Advance payment platforms and their integration with electronic invoicing
The implementation of advance payments has been facilitated by platforms such as Stripe, which allow companies to charge their customers securely and efficiently before initiating the provision of the service or delivery of the product. These platforms offer a variety of functionalities:
- Automated payment processing: Allows the capture and management of payment automatically, reducing errors and streamlining cash flow.
- Integrated electronic invoicing: Generates and sends electronic invoices that comply with current regulations, ensuring the legal validity of transactions.
- Management of subscriptions and recurring payments: Ideal for businesses that offer ongoing services, facilitating the automation of recurring collections.
- Fraud detection: Incorporates advanced security systems that protect both the company and the customer against fraudulent transactions.
The integration of these platforms with electronic invoicing systems is essential to comply with the regulations that will come into force in July 2025. As of that date, the use of systems such as VERI*FACTU will be mandatory for the issuance of electronic invoices, which will prevent the generation of invoices using tools such as Word or Excel. In addition, it will not be enough to send the invoice in PDF format; a structured format will be required to allow its automatic processing by the Tax Agency.
Benefits of adopting pre payment and electronic invoicing
- Improved liquidity: By receiving payment prior to service delivery, the availability of funds to operate and grow is assured.
- Reducing defaults: Collecting in advance minimizes the risk of delinquency and the complications associated with debt collection.
- Regulatory compliance: Electronic invoicing ensures compliance with tax obligations, avoiding penalties and facilitating the relationship with the Administration.
- Operational efficiency: Process automation reduces the administrative burden, allowing companies to focus on strategic activities.
- Transparency and trust: A clear and efficient payment and invoicing system strengthens the relationship with customers, generating trust and loyalty.
Preparing for the new regulations: the role of Cigarrán Abogados
The transition to electronic invoicing and the adoption of advance payment systems require careful planning and adaptation of internal processes. At Cigarrán Abogados, as Holded partners and experts in business consulting, we offer comprehensive support in this process.
Our services include:
- Personalized advice: We analyze the specific needs of your business to implement the most appropriate electronic invoicing solution.
- Integration with payment platforms: We facilitate the connection of your billing system with platforms such as Stripe, optimizing the management of collections.
- Training and support: We train your team in the use of the new tools and offer continuous support to solve any incident.
- Constant updating: We keep up to date with legislative and technological developments to ensure that your company is always in compliance with current regulations.
The imminent mandatory implementation of electronic invoicing in Spain, coupled with the increasing digitization of business processes, makes it essential for companies to adopt efficient payment and invoicing management systems. Implementing payment in advance, supported by specialized platforms, not only guarantees regulatory compliance, but also brings multiple operational and financial benefits.
At Cigarrán Abogados, we are committed to accompanying you in this transition, offering solutions tailored to your needs and ensuring that your company is prepared for the challenges and opportunities presented by the new digital environment.
¿Do you need help? At Cigarrán Abogados we can help you (+34) 91.355.85.15
