Notification or Non-Notification Factoring: Which Should You Choose?

In a notification factoring arrangement, your customers are informed that a factoring company will manage and collect your accounts receivable (AR). The factoring company sends a Notice of Assignment (NOA) to your customers, informing them about the change in payment structure and process.

Factoring companies always communicate with, and collect from, your customers in a professional and friendly manner. Plus, the factoring industry is growing rapidly, so it’s likely that your customers are already familiar with the process and, usually, they don’t have any problems with it.

Non-notification factoring, also known as confidential invoice factoring, is similar to notification factoring, but your customers remain unaware of the factoring company’s involvement. Instead, the factoring company communicates with your customers as if they were an extension of your business, using your branding.

Each business has unique needs, and the best factoring solution depends on your specific circumstances. Factoring companies offer a wide range of notification and non-notification options, allowing you to make the best choice for your company. Consider the following factors when making your decision:

Both notification and non-notification factoring can provide businesses with the financial flexibility they need to grow and succeed. Carefully evaluate the pros and cons of each option to determine the best factoring solution for your business.

You can use this Factoring Guide to learn more about the flexibility and features of the different types of invoice factoring. If you need assistance or further information, don’t hesitate to reach out to our team of experts for guidance.

Request a free factoring rate quote from our team at Invoice Factoring Guide (IFG) and we will match you with the best factor for your needs, whether you’re looking for a notification or non-notification factoring arrangement.