Posted by admin in Glossary

Notification refers to whether or not the end customer – the account debtor – is aware that the account receivable has been factored. When the customer is aware, payment will typically be made to the factor in the factor’s name. In the case of non-notification, the customer does not know that the debt has been sold. The customer continues to make payment using the factoring client’s name. Payment is most often remitted to a lockbox and subsequently deposited into the factor’s account. When the customer is contacted in a non-notice situation, the factor identifies itself by the name of the factoring client.

One Response to “Notification”

1. 1
   Factor’s Acknowledgement Form Pinged With: @8:06 pm 
   

   [...] and sent to the client’s customers verifying that the debt does in fact exist. In the case of a notice, the customer is directed to remit payment to the factor under whatever terms exist for the [...]

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