Definition
Factoring where customers aren't told their invoices are assigned.
Why it matters
See confidential factoring.
Where it shows up in a deal
In a non-notification structure the invoice carries no assignment legend, no notice of assignment is sent, and payments arrive in a collection account that does not identify the funder. The funder gives up verification by notice, so it substitutes other controls: account control agreements, periodic field audits and tighter reporting.
What it affects
- The qualification bar is higher - track record, reporting quality and clean dilution history all matter more.
- You keep the collections work and the reconciliation burden that comes with it.
- Advance rates are often a little lower than on an equivalent notification facility.
- Most agreements let the funder give notice at any time, and on default it will.
The common mistake
Related terms
- Confidential FactoringFactoring in which customers aren't notified and keep paying the business directly.
- Notice of AssignmentA letter telling customers to pay the factor instead of the business.
- Invoice DiscountingBorrowing against invoices while keeping control of collections.
- VerificationThe process of confirming an invoice with the customer before funding.
Questions about how non-notification factoring affects your facility?
Call (929) 658-8087 or request a written quote — no obligation, no credit impact.
